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Commonly Asked Questions about Landlord Tenant Assignments

Tenants oftentimes wish to assign a lease to an assignee, who will step into the shoes of the original tenant and occupy the space involved in a lease. Many leases require that landlords consent to such assignments in order for them to be effective.
Under Texas law, if the lease does not provide otherwise, an assignment or sublease always requires the prior consent of the landlord. TEX. PROP. CODE 91.005 (West 2002).
Assignment of Rents is a legal mechanism used in real estate where a property owner assigns their right to collect rents from the property to a lender as security for a loan.
A notice of assignment of lease, which is a form signed by both the assignor-landlord and the assignee, or new landlord, is one way to give notice.
Regarding unpaid rent, what is the difference between an assignment and a sublease? In an assignment, both the assignor and assignee are liable to the landlord for unpaid rent. In a sublease, only the sublessee is liable to the landlord for unpaid rent.
Thus, when the tenant retains some right of reentry onto the leased premises, the law deems the transfer a sublease. On the other hand, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, the transfer is an assignment.
A lease assignment occurs when a tenant fully transfers their lease to another party. This is particularly important for tenants who wish to get out of their leases early due to financial issues, especially if a landlord does not allow subleases.
The assignor must agree to assign their rights and duties under the contract to the assignee. The assignee must agree to accept, or assume, those contractual rights and duties. The other party to the initial contract must consent to the transfer of rights and obligations to the assignee.