In a lease, what assignment-related rights may the lessor exercise?

• A. Prohibit Assignments by Lessees to Unknown Entities or Require Written Permission
• B. Allow Any Assignment Without Notice
• C. Prohibit Assignment Only If Lessee Breaches
• D. Allow Assignment to Any Third Party Regardless of Consent

Answer: (A)

Leases typically give the landlord control over who can take over the lease through an assignment clause. The essential idea is that the landlord may limit assignments to unknown entities or require written permission before a transfer occurs. This protects the property by ensuring the new occupant meets the lender’s and property owner’s standards, maintains the intended use of the space, and keeps a formal record of who bears the lease obligations.

Allowing assignments without notice would remove that protection, exposing the landlord to unknown credit risk and use issues. Prohibiting assignments only when there’s a breach would ignore the landlord’s need to vet any new occupant even if the current tenant is in good standing. Allowing assignment to any third party regardless of consent would similarly strip away necessary oversight. The stated right—prohibiting assignments to unknown entities or requiring written permission—best aligns with the landlord’s interest in control and proper documentation.