Florida Broker Practice Exam

What occurs when a lessee assigns all of the leased property to another party for the full remaining lease term?

1. Sublease

2. Assignment of lease

3. Ground lease

4. License agreement

The correct answer is: Assignment of lease

When a lessee assigns all of the leased property to another party for the full remaining lease term, it is termed an assignment of lease. In this scenario, the lessee, often referred to as the assignor, transfers their rights and obligations under the lease agreement to another party, known as the assignee. This means that the assignee takes over the lease and is responsible for the lease's terms, including rent payments, as if they were the original lessee. This process involves the complete transfer of interest in the leasehold, and the original lessee may retain some degree of liability, depending on the specific terms of the lease and local laws. The assignment effectively allows the new party to step into the place of the original lessee, maintaining the same terms and conditions set forth in the original lease without needing to negotiate a new agreement. In contrast, a sublease occurs when a lessee rents out the property to another party but retains some interest in the lease, meaning the original lessee is still responsible to the landlord for fulfilling lease obligations. A ground lease is a long-term lease of land, typically allowing improvements to be made on the land, and a license agreement grants permission to use property for a specific purpose without conveying any interest