RES exam question on Leasing of Private Property: Mr Tan holds a five-year lease of a shop unit with three years left
Mr Tan holds a five-year lease of a shop unit with three years left. With the landlord's written consent, he transfers all his rights under it to Ms Wong for the whole remaining term. The consent says nothing about releasing him. Which statements are correct? (i) Since Ms Wong takes the whole of the remaining term, therefore the transfer is an assignment and not a sublease. (ii) Mr Tan remains liable to the landlord on his covenant to pay rent unless the landlord releases him. (iii) While she holds the lease, Ms Wong is bound to the landlord to pay the rent and observe the covenants. (iv) Since the landlord consented in writing, therefore Mr Tan is released from all his covenants under the lease.
- A(ii) and (iii) only
- B(i) and (iv) only
- C(i), (ii) and (iii) only
- D(i), (iii) and (iv) only
Show answer & explanation
Answer
C. (i), (ii) and (iii) only
Explanation
Answer: (i), (ii) and (iii) only. A transfer of the whole remaining term is an assignment, and consent to it does not release the original tenant.(i) True. Ms Wong takes everything that is left, so the transfer is an assignment; a sublease would carve out a shorter term.(ii) True. He made his promises in the lease itself, so he stays liable for the whole term unless the landlord releases him. Nothing released him, and Singapore has no statute releasing an assignor automatically.(iii) True. The assignee steps into the tenant's place and is bound to the landlord on the lease covenants while she holds the term.Rule: Assignment transfers the whole remaining term, and the assignee is bound while it holds the term; subletting leaves the tenant in place as sub-landlord. The original tenant stays liable on his covenants for the whole term unless the landlord releases him.Source: /learn/lease-vs-licence-singapore
Why the other options are wrong
- (iv) False. Consent was given, but consent permits the assignment and does not discharge Mr Tan. Consent is not a release.
Study the concept behind this question: Leasing Private Residential Property (Singapore)
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