RES exam question on Leasing of Private Property: Mr Tan holds a 5-year commercial lease with exactly 3 years remaining
Mr. Tan holds a 5-year commercial lease with exactly 3 years remaining. He purports to transfer all his rights and obligations under the lease to Ms. Wong for the entire remaining 3-year unexpired term. Which of the following statements are correct? (i) Because the arrangement covers the full unexpired term, it operates as an assignment rather than a sublease (ii) Upon a valid assignment, Mr. Tan is automatically and fully released from all obligations under the original lease (iii) In a sublease (had the arrangement been for a period shorter than 3 years), Mr. Tan would remain directly liable to the original landlord throughout the head-lease term (iv) A landlord's written consent is legally required for an assignment but is never required for a subletting
- A(i), (ii) and (iii)
- B(ii) and (iv) only
- C(i), (iii) and (iv)
- D(i) and (iii) only
Show answer & explanation
Answer
D. (i) and (iii) only
Explanation
(i) CORRECT: An arrangement for the full unexpired term is an assignment (not a sublease, which must be shorter than the head lease). (ii) WRONG: Mr. Tan remains liable to the landlord as the original covenantor after assignment unless the landlord expressly releases him via novation. (iii) CORRECT: In a sublease, the head-tenant retains direct contractual liability to the original landlord on all head-lease covenants. (iv) WRONG: Under a qualified covenant against assignment or subletting, landlord consent is typically required for BOTH assignment and subletting, not just assignment.
Study the concept behind this question: Leasing Private Residential Property (Singapore)
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