Judicial principles and studies
Tenant's Disposition of the Right of Use (Assignment of Lease and Sublease)
A brief summary distinguishing assignment of lease from sublease, their effects on transfer of rights and obligations, and the court's role in characterizing the transaction.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
- The cited provisions (Articles 703, 705 and 706 of the Civil Code) recognize the tenant's ability to dispose of the right of use by sale, gift or other transactions, treating assignment of the lease as such a disposition, while a sublease constitutes a separate lease contract.
Summary
- Assignment of lease: the original lease between landlord and tenant remains, but the original tenant transfers all rights and obligations under that contract to the assignee. This transaction functions as an assignment of rights and, simultaneously, an assignment of obligations. The assignee may bring direct actions against the original landlord for the rights assigned to them if the landlord accepted the assignment, while the assignee must assume the original tenant's obligations. The original landlord continues to have the contractual remedies arising from the lease, such as claims for delivery of the property, maintenance, protection against interference, entitlement and hidden defects. The original tenant is not regarded as the landlord of the assignee merely by reason of the assignment. - Sublease: there is an original lease between the landlord and the original tenant and a distinct sublease between the original tenant and the subtenant, creating a landlord–tenant relation between the latter two. Rights that belong to the original tenant under the main lease do not transfer to the subtenant; rather, the original tenant, as sublessor, incurs obligations to enable the subtenant's enjoyment of the property according to the contract's purpose and terms, including warranty against hidden defects. The subtenant does not have the right to claim the original landlord's obligations arising from the main lease. - Court's role: the judge must determine whether the act is an assignment or a sublease by ascertaining the parties' intent and common will, without relying solely on the labels used by the parties, and may consider indicia that shed light on that intent. This content is an educational summary and does not constitute a judicial text or legal advice.
Practical significance
This is a general educational summary based on the points published in the official source. It does not replace the original material or a review by Ashraf Al-Khawaja before relying on it for any action.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.