What type of agreement is a tenant allowed to transfer to another party in real estate?

What type of agreement is a tenant allowed to transfer to another party in real estate?

• A. Lease assignment
• B. Sublease
• C. Exclusive agency
• D. General warranty deed

Answer: (B)

A sublease agreement allows a tenant to transfer their rights and obligations under a lease to another party, known as the subtenant. In a sublease, the original tenant remains responsible for the lease with the landlord, even though they are allowing someone else to occupy the property. This arrangement is typically used when the original tenant needs to vacate the property for a certain period but does not want to terminate their lease entirely. In contrast, a lease assignment completely transfers the lease rights and responsibilities from the original tenant to the new tenant, with the original tenant being released from any obligations. Although lease assignments can also occur, not all leases allow for this transfer unless expressly permitted in the lease agreement. It's important to clarify that exclusive agency and general warranty deeds do not pertain to tenant agreements. An exclusive agency is a type of listing agreement in real estate sales, while a general warranty deed is a legal document used to convey real property ownership and ensure a clear title. Therefore, these latter options would not be applicable in the context of what a tenant can transfer.

A sublease agreement allows a tenant to transfer their rights and obligations under a lease to another party, known as the subtenant. In a sublease, the original tenant remains responsible for the lease with the landlord, even though they are allowing someone else to occupy the property. This arrangement is typically used when the original tenant needs to vacate the property for a certain period but does not want to terminate their lease entirely.

In contrast, a lease assignment completely transfers the lease rights and responsibilities from the original tenant to the new tenant, with the original tenant being released from any obligations. Although lease assignments can also occur, not all leases allow for this transfer unless expressly permitted in the lease agreement.

It's important to clarify that exclusive agency and general warranty deeds do not pertain to tenant agreements. An exclusive agency is a type of listing agreement in real estate sales, while a general warranty deed is a legal document used to convey real property ownership and ensure a clear title. Therefore, these latter options would not be applicable in the context of what a tenant can transfer.