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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Landlord-Tenant
Satisfied Customers: 9849
Experience:  Commercial and residential leases in NY & NJ & US
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IF THE TENANT IS A CORPORATION, AND ASSIGNS AN OCCUPANT TO

Customer Question

IF THE TENANT IS A CORPORATION, AND ASSIGNS AN OCCUPANT TO OR OF A LEASE AND THE OCCUPANT IS TRANSFERS OR IS DESIRING TO MOVE FROM THE PROPERTY THEN IS THE CORPORATION STILL RESPONSIBLE FOR THE LEASE.
Submitted: 4 months ago.
Category: Landlord-Tenant
Expert:  Richard - Bizlaw replied 4 months ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

You say the corporation assigned the lease. An assignment generally means that the new tenant steps into the place of the original tenant and the original tenant has no further involvement with the lease. Most leases prohibit assignments without the approval of the landlord. If the tenant allows another to occupy the premises then it is generally a sublease where the original tenant remains liable on the lease. What you have to say is what exactly were the terms of the transfer from the corporation to the new tenant and whether the corporation had the power to do the transfer under the terms of the original lease?

Customer: replied 4 months ago.
lets be clear.. The tenant is the small corporation.. they assigned "designated an occupant " The Tenant has been paying the rents' for the occupant.
Customer: replied 4 months ago.
hello?
Expert:  Richard - Bizlaw replied 4 months ago.

This sounds like a subtenancy not an assignment. Under a subtenancy, the principal tenant, the corporation, remains liable on the lease with the landlord. Only if the landlord specifically relieves the corporation of this liability will the corporation not be liable. From your post it appears no such release was provided and for this reason, the corporation will be liable for the unpaid rent if the occupant leaves and stops paying.

If I have answered all your questions, please positively rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Expert:  Richard - Bizlaw replied 4 months ago.

It has been a couple of days since I answered your questions. If you have more questions let me know. If not, please highly rate my answer as that is how I get credit for the time I spent on your question.

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