Under what circumstance does a new party assigned a leasehold interest owe rent to the landlord?

Prepare for the Multistate Bar Examination (MBE) with our engaging quiz. Featuring flashcards and multiple choice questions, each with hints and explanations. Get ready to excel!

A new party assigned a leasehold interest typically owes rent to the landlord regardless of prior breaches made by the original tenant. This principle is rooted in the concept that a lease agreement creates a landlord-tenant relationship between the landlord and the person currently in possession of the lease, which in this case is the new party assigned to the leasehold.

When a lease is assigned, the assignee steps into the shoes of the original tenant and inherits the rights and responsibilities of that lease, including the obligation to pay rent. The payment obligation does not depend on whether there were any prior breaches by the assignor (the original tenant). Even if the original tenant was in default before the assignment, the new tenant is still responsible for making rent payments to the landlord, as the landlord's right to collect rent is not negated by previous breaches.

The other options suggest conditions or requirements that do not accurately reflect the nature of lease assignments:

  • There is no need to establish a breach for the new party to owe rent.

  • The landlord's agreement to the assignment does not change the fact that the new party assumes all relevant obligations, including rent, under the lease.

  • Notification by the previous tenant is irrelevant in establishing the new party’s obligation to owed rent

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy