Sublease: transfer PART of the term/space — original tenant stays the landlord's tenant
Before you read
Test yourself first: 5 questions
Question 1 of 5
When a tenant transfers the ENTIRE remaining term of a lease to another party, it is an:
Answer: A. An assignment transfers the whole remaining term; a sublease transfers only part. The original tenant usually stays secondarily liable.
Question 2 of 5
Which statement BEST distinguishes a sublease from an assignment?
Answer: B. In a sublease the original tenant transfers only part of the term and retains a reversion, remaining the landlord's tenant; an assignment transfers the entire remaining interest.
Question 3 of 5
In an assignment of a lease, the assigning tenant generally:
Answer: B. An assignment transfers the tenant's entire remaining interest, but unless the landlord releases the original tenant, that tenant typically remains secondarily liable on the lease.
Question 4 of 5
Substituting a new party or contract for an existing one, releasing the original obligation, is:
Answer: A. Novation replaces a party/contract and releases the original obligor. Assignment transfers rights but may not release the original party.
Question 5 of 5
Assignment of a contract differs from novation in that an assignment:
Answer: B. In an assignment, the assignor transfers contract rights but usually stays secondarily liable; novation substitutes a new party and releases the original.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Assignment: transfer the ENTIRE remaining term — assignee pays landlord directly
- Sublease: transfer PART of the term/space — original tenant stays the landlord's tenant
- Original tenant remains LIABLE in both (unless released by novation)
- Leases commonly require landlord consent — 'not unreasonably withheld'
- Exam cue: entire remainder = assignment; anything less = sublease
Assignment vs Sublease (Leases): FAQs
Is Assignment vs Sublease (Leases) on the real estate exam?
Yes. Leasing & Property Management is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
