A Normal Assignment of Lease by a Tenant Leaves the Tenant

question 13

Essay

A normal assignment of lease by a tenant leaves the tenant liable to the landlord in the event of a breach or default by the assignee.Explain a practical solution to such a situation to relieve the tenant of liability and list one qualification to it.

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Definitions:

Personal Use

Refers to the use of property or services primarily for individual or household purposes, not for business or income-producing activities.

Schedule E

A tax form used by landlords, S-corporation, partnerships, and other entities to report income and expenses from rental real estate, royalties, partnerships, S corporations, trusts, and residual interests in REMICs.

Rental Income

Income received from renting out property, such as buildings or land, which is usually subject to income tax.

Primarily Personal

Indicates the use of property or resource predominantly for the owner's personal purposes and enjoyment rather than for business or rental.