RES exam question on Tenancy, Torts & Mortgage: A head tenant under a 3-year lease wants to transfer his interest
A head tenant under a 3-year lease wants to transfer his interest. He weighs assigning the entire lease to a third party versus subletting part of the premises. The head lease requires the landlord's consent to deal with the lease. Evaluate the statements: (i) An assignment transfers the whole of the tenant's interest to the assignee (ii) A sublease creates a lesser interest, with the head tenant remaining liable under the head lease (iii) Both typically require the landlord's consent where the lease so provides (iv) After an assignment, the original tenant always remains the landlord's tenant in possession Which statements are CORRECT?
- A(i), (iii) and (iv) only
- B(i), (ii) and (iii) only
- C(ii), (iii) and (iv) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
B. (i), (ii) and (iii) only
Explanation
Assignment transfers the whole interest; subletting creates a lesser interest with the head tenant still liable; both need consent.
Why the other options are wrong
- (iv) is the trap — on assignment the assignee, not the assignor, becomes the tenant in possession.
Study the concept behind this question: Landlord & Tenant Law: Covenants, Quiet Enjoyment & Forfeiture
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