In the context of landlord-tenant issues, most people use the terms “sublet” and “assign” interchangeably; however, they have distinct meanings under the provincial Residential Tenancies Act.
Under the legislation, subletting means that the tenant has vacated the unit, and gives one or more persons the right to occupy the unit until a specific date before the end of the tenancy, and that the tenant has the right to resume his or her tenancy after the specified date. Assignment means that the tenant transfers his or her lease to another individual in its entirety.
Generally, the tenant has the right to assign or sublet a tenancy if he or she can find a suitable candidate to assume the lease. Although the tenant generally must obtain the landlord’s approval of the assignment or sublet, the law mandates that such consent may not be arbitrarily withheld.
The main difference between subletting and assignment lies in their legal consequences.
Under assignment, the same terms and conditions of the old lease apply to the assignee, and
(a) the assignee is liable to the landlord for any breach of the tenant’s obligations and may enforce against the landlord any of the landlord’s obligations under the tenancy agreement or this Act, if the breach or obligation relates to the period after the assignment;
(b) the former tenant is liable to the landlord for any breach of the tenant’s obligations and may enforce against the landlord any of the landlord’s obligations under the tenancy agreement or this Act, if the breach or obligation relates to the period before the assignment.
Under subletting,
(a) the tenant remains entitled to the benefits, and is liable to the landlord for the breaches, of the tenant’s obligations under the tenancy agreement or this Act during the subtenancy;
(b) the subtenant is entitled to the benefits, and is liable to the tenant for the breaches, of the subtenant’s obligations under the subletting agreement or this Act during the subtenancy; and
(c) the subtenant has no right to occupy the unit after the end of subtenancy.
