MBE Rules · Real Property
Assignment vs. sublease
The rule
Assignment: tenant transfers ENTIRE remaining interest — assignee in privity of estate with landlord; original tenant remains in privity of contract. Sublease: tenant transfers LESS than entire interest — no privity between landlord and sublessee.
In plain English
If a tenant gives all their remaining lease time to someone else, it's an assignment. If they give only part of it, it's a sublease.
Worked example
Tenant A has 6 months left on their lease. They let Tenant B use the apartment for 4 months. This is a sublease, so Tenant A still deals with the landlord.
Memory hook
Assign all, sublease some. Assignment transfers full interest; sublease retains a slice.
The trap
Students think: any transfer creates privity with landlord. Wrong, because subleases don't. The actual test is if the entire interest is transferred for assignment.
How examiners test it
The MBE loves: tenant transfers lease but retains last month. Question: assignment or sublease? Trap: assuming assignment, but it's a sublease due to retained interest.
Drill this rule until it can't fail you.
Vrenberg generates unlimited questions on this exact rule, tracks your mastery of it, and brings it back until it sticks.