Assignment of Lease Distinguished from Subleasing

Once again, the SC in BPI-Family Savings Bank v. Sps. Domingo, et al., G.R. No. 158676, November 27, 2006, the distinctions between subleasing and assignment of lease were made.

In a sublease situation, the lessee continues to be liable to the lessor for the payment of rent. The sublessee pay rent not to the lessor but to the lessee/sub-lessor. On the other hand, in an assignment of rights, the assignee steps into the shoes of the lessee who is thereupon freed from his obligations under the lease because from then on it is the assignee who is liable to the lessor for rental payment. In other words, in an assignment of rights, there is a change of lessor, which is not so in a sublease situation. It is thus understandable why it is not necessary for the lessor to give his consent to a sublease, while in an assignment of rights, it is a necessity for the lessor to require his prior consent. This is for the lessor’s own protection.