Sublease and lease assignment agreements

In either case, if the lessor approves the sublease or lease assignment, an agreement will have to be reached between the assignor and the assignee or the sublessor and the sublessee. These agreements go by different names.

Sublease agreement

An agreement between the sublessor (the current lessee) and the sublessee is referred to as a sublease agreement. Interestingly, in such a case, some of the conditions may differ from those set out in the lease (rent, term, etc.), as long as this does not contradict the conditions set out in the original lease. Naturally the sublessee cannot have more rights than the lessee himself.

Lease assignment agreement

In the case of a lease assignment, the agreement is called a lease assignment agreement. There is no new lease between the assignee and the lessor.
 

SUMMARY – Sublease and lease assignment

Sublease

• The lessee must obtain the lessor’s consent.
• The lessee is not released of his obligations toward the lessor.

The lessor cannot refuse consent without a serious reason.

Assignment

• The lessee must obtain the lessor’s consent.
• The lessee is released of his obligations toward the lessor (except if otherwise specified in the lease).
• The lessor has recourse against the new lessee only (except if otherwise specified in the lease).

The lessor cannot refuse consent without a serious reason.