What occurs if a tenant transfers all his or her interests under a lease?

When a tenant transfers all of their interests under a lease, it is referred to as an assignment of the lease. In this context, the tenant, known as the assignor, hands over their rights and obligations under the lease to a third party, known as the assignee. This means the assignee assumes the responsibilities and privileges that the original tenant had. The landlord must typically consent to this transfer, as it affects their relationship with the new tenant.

The distinction between a sublease and an assignment is critical in understanding this concept. In a sublease, the original tenant retains some interest in the property, whereas an assignment involves a complete transfer of all rights. Since the tenant in this scenario transferred all interests, it fits the definition of assignment perfectly.

In addition, it's important to note that assigning a lease does not nullify the original lease or create a new lease; rather, it maintains the original lease in effect while allowing a new party to occupy the property under the same terms. The relationship and obligations originally established between the landlord and tenant remain intact unless modified by the new agreement or prohibited by the lease terms.