In a real estate transaction, what differentiates a sublease from an assignment?

In a real estate transaction, a sublease is characterized by the fact that it typically occurs for only a part of the lease term. This means that the original tenant retains some level of interest and responsibility towards the landlord while allowing another party to occupy the property for a specified period. By entering into a sublease, the original tenant is essentially creating a secondary agreement with a new tenant, but the original lease remains in effect, and the original tenant remains liable under that lease.

This differs significantly from an assignment, where the original tenant transfers their entire interest in the lease to a new tenant. In an assignment, the new tenant takes over the lease fully and directly assumes the responsibilities to the landlord. Such a transfer usually requires the landlord’s consent to ensure that the new tenant meets the approval criteria set forth in the original lease agreement.

Overall, understanding the distinction between a sublease and an assignment is important for managing responsibilities and rights in real estate transactions, including the obligations towards rental payments and the duration of occupancy.