Surrendering and Terminating Subleases: How to Avoid the Potholes
Sep 22, 2000 | Article
Written by Natalie Vukovich
LSUC - Return of the Six-Minute Commercial Leasing Lawyer 2000)
At common law, privity of estate was destroyed upon merger or surrender of a tenant's reversion and, as a results, covenants were thereby prevented from running with the reversion. As such, following the surrender of the head lease, a subtenant would be released from all its obligations under the sublease and, accordingly, the subtenant would be in a position to lawfully enjoy the property for the balance of the term of the sublease without payment of rent or observance of any covenants.
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