Property II

Lease Transfer

Types of lease transfers:

  1. Assignment

    An assignment is when a tenant gives all of his possessory rights to an assignee.

    An assignment places the assignee in privity of estate with the landlord.

  2. Sublease

    A sublease is when a tenant gives anything less than all of his possessory rights. This then makes the tenant the landlord of the sublessee.

    A sublease does not put the sublessee in privity of estate with the landlord.

Recapture Clause

A recapture clause is where a tenant agrees to pay the landlord some or all of the profit he makes from an assignment or sublease.

Statute of Frauds

A statute of frauds is a defense that prevents the enforcement of a land transfer transaction or a lease longer than one year unless there is a signed written memorandum listing the price, parcel, and parties.

Neither a legal description of the property nor the parties' full names are required, only enough to identify them.

Restatement Second of Contracts § 129
Restatement Second of Contracts § 129

Action in Reliance; Specific Performance

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A contract for the transfer of an interest in land may be specifically enforced notwithstanding failure to comply with the Statute of Frauds if it is established that the party seeking enforcement, in reasonable reliance on the contract and on the continuing assent of the party against whom enforcement is sought, has so changed his position that injustice can be avoided only by specific enforcement.

Copyright, The American Law Institute