Property Management

In Michigan, a commercial tenant's 'assignment' of a lease differs from 'subletting' because:

AThey are legally identical
BIn an assignment, the original tenant transfers all their lease rights and obligations to a new tenant; in a sublease, the original tenant retains some obligations and the sub-tenant pays rent to the original tenant✓ Correct
CSubletting requires court approval; assignment does not
DAssignment is prohibited in Michigan; only subletting is allowed

Explanation

An assignment transfers the entire remaining lease interest to the assignee, who steps into the original tenant's shoes. A sublease creates a new lease between the original tenant (sublandlord) and subtenant, while the original tenant typically remains liable on the original lease.

Related Michigan Property Management Questions

Practice More Michigan Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Michigan Quiz →