Difference between "assign" and "sub-lease" in a lease? | ScriptaLegal
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Frequently asked questions > Commercial lease > The rights and obligations of each > What is the difference between "assign" and "sub-lease" of his rights in a lease?

What is the difference between "assign" and "sub-lease" of his rights in a lease?

The assignment and subletting of a commercial lease are two different operations which do not have the same consequences for the tenant.

In a sublease , the tenant allows another person, called the subtenant, to occupy all or part of the leased premises. The tenant remains a party to the lease agreement with the landlord and remains responsible to them for their obligations.

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In a lease assignment , the tenant transfers their rights under the lease to the assignee. In principle, the assignment releases the original tenant from their future obligations to the landlord. However, in leases other than residential leases, the parties may agree that the original tenant remains responsible for their obligations after the assignment.

A tenant who wishes to assign their lease or sublet all or part of the premises must comply with the rules set out in the Civil Code of Quebec as well as the applicable provisions of their lease.

The tenant must notify the landlord of their intention to assign the lease or sublet the premises and provide the name and address of the person to whom they intend to assign or sublet. The landlord cannot refuse consent without a valid reason.

The distinction is therefore important: in a sublease, the tenant remains directly bound to the lessor by his lease, whereas in an assignment, the assignee takes the place of the tenant with respect to the rights assigned, subject in particular to the obligations that the initial tenant may have agreed to retain.

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