When a tenant assigns the lease for the remaining term, which statement is true about liability?

Prepare for the Themis MBE Real Property Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your test!

Multiple Choice

When a tenant assigns the lease for the remaining term, which statement is true about liability?

Explanation:
When a lease is assigned, the key idea is that the original tenant remains tied to the lease through privity of contract, so liability does not automatically end with the assignment. The landlord and the original tenant continue to have a contractual relationship, and unless the landlord releases the original tenant, they can be held responsible for rent and other covenants under the lease even after the transfer. The person who takes over—the assignee—usually becomes liable to the landlord for the obligations they’ve assumed, and the landlord’s remedies can run against both parties if breaches occur. An assignment does not discharge the lease covenants, nor does it terminate the tenancy. So the statement about the original tenant remaining liable reflects this ongoing contractual connection that preserves liability beyond the transfer.

When a lease is assigned, the key idea is that the original tenant remains tied to the lease through privity of contract, so liability does not automatically end with the assignment. The landlord and the original tenant continue to have a contractual relationship, and unless the landlord releases the original tenant, they can be held responsible for rent and other covenants under the lease even after the transfer. The person who takes over—the assignee—usually becomes liable to the landlord for the obligations they’ve assumed, and the landlord’s remedies can run against both parties if breaches occur. An assignment does not discharge the lease covenants, nor does it terminate the tenancy. So the statement about the original tenant remaining liable reflects this ongoing contractual connection that preserves liability beyond the transfer.

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