Legal Question in Real Estate Law in California

Re: Breakin' the Lease

Howdy:

Sure. The first example is an assignment. Under that situation, as I think you realize, you'd still be on the hook for the rent and the security.

The second part of your question deals with a novation. Here, if the landlord agrees (and, unless he's really unreasonable, or unless the substitute is really a flake, he shouldn't have a problem with it), the new person would be fully responsible and you'd be free.

When doing this, be sure to get a letter of release from the landlord acknowledging the novation.

Re: Breakin' the Lease

Subleasing does not free you from obligations under your lease agreement. Additionally, most leases require landlord's consent.

Re: Breakin' the Lease

There are three more or less distinct things, legally speaking, that can happen: sublease, assignment, and novation. Here's how to tell them apart.

(1) In a SUBLEASE, you transfer your interest in the lease to someone else for a term less than your own, retaining the right to resume occupancy at the end of the sublease. You remain liable to the landlord and the subtenant is liable to you.

(2) In an ASSIGNMENT, you transfer your entire remaining interest in the lease to someone else. If you notify the landlord, the landlord should look to the assignee first for the rent, but you remain liable if the assignee doesn't pay. Usually, at least; there are variations.

(3) In a NOVATION, a new lease replaces the old lease. A novation requires the active participation of all three parties: the old tenant, the new tenant, and the landlord. After a novation the old tenant is off the hook completely, and only the new tenant is liable to the landlord.

Assignments and subleases are permitted without the prior consent of the landlord unless the lease requires otherwise. Many leases do, however, contain restrictions upon assignment and subletting (subleasing).

Re: Breakin' the Lease

Yes, you can totally transfer the lease to someone else's name, but it must be with the consent of the landlord. That is the only way that you are totally protected.

Re: Breakin' the Lease

A Sublease would not do. You need to get a formal assignment which is agreed in writing from the landlord.