In today’s real estate market, rent payments may be extremely difficult to make. Sometimes we have to take part-time jobs in another city, leave the college apartment for the summer, or any circumstance where we have to pay double rent and need help with the finances. This is where most people think about a sublease. Subleasing involves the tenant of the property leasing their property or a portion of their property for a specific amount of time. Usually, this means the tenant is planning on returning to the property. A difference between a sublease and an assignment is in an assignment, the tenant is assigning the rest of the lease to the new tenant for the entire duration of the lease. When thinking about a sublease or an assignment it is important to think about the liability.
In general, the goal of a sublease is for the renter to make payments, so you do not have to. This saves tenants money and gives the new renter a place to stay for a short period. But, there are some risks. The landlord-tenant responsibility does not change in a sublease. If the new renter does not make the rent payments, the original tenant is the one liable. In a sublease, the tenant is always liable under the privity of contract and privity of estate. Now this does not mean the tenant cannot seek payment from the renter and the renter can do whatever they want. The tenant can seek action against the person renting, but the tenant is the one liable to the landlord not the renter in a sublease. It is important to remember when planning a subleasing agreement that if you are the tenant, you are still liable to the landlord. The assignment is different.
In an assignment, the renter is now liable to the landlord. The renter in an assignment is now the new tenant and is liable under the privity of the estate because they are the tenant in possession of the property since they assumed the remainder of the lease. The original tenant is not returning in this circumstance. The original tenant is still liable, however. The original tenant will still be liable under the privity of the contract. In this circumstance, both the tenant and new tenant are held liable by the landlord, which is why an assignment is different than a sublease.
When thinking about getting help with your payments or finding a short-term place to live, it is important to think about the liability of a sublease or assignment. King Law Offices is a full-service law firm with an outstanding team of professionals who work diligently, creatively, and compassionately on behalf of our clients each day. If you have a current conflict with your title or your deed, contact King Law at 888-748-KING for a consultation. We have offices located across western North Carolina and upstate South Carolina. We are here to serve you and to guide you as we navigate this journey together.