Read also: PERSONS DISQUALIFIED TO BECOME LESSEES
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The lessee cannot assign the lease without the consent of the lessor.
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The assignment of a lease by the lessee involves a transfer of rights and obligations pertaining to the contract; hence, the consent of the lessor is necessary.
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There arises the new juridical relation between the lessor and the assignee who is converted into a new lessee.
Can a lessee assign the lease of the house to another, without the consent of the lessor?
No, unless there is a stipulation to that effect.
The law says:
“The lessee cannot assign the lease without the consent of the lessor, unless there is a stipulation to the contrary.”
The assignment of a lease by the lessee involves a transfer of rights and obligations pertaining to the contract; hence, the consent of the lessor is necessary.
In the case of Josie Go Tamio v. Encarnacion Ticson (G.R. NO. 154895, November 18, 2004), the Court explained that, the objective of the law in prohibiting the assignment of the lease without the lessor’s consent is to protect the owner or lessor of the leased property. In the case of cession or assignment of lease rights on real property, there is a novation by the substitution of the person of one of the parties – – the lessee. The personality of the lessee, who dissociates from the lease, disappears; only two persons remain in the juridical relation – – the lessor and the assignee who is converted into the new lessee.
Thus, there arises the new juridical relation between the lessor and the assignee who is converted into a new lessee.
Hence, the lessee cannot assign the lease without the consent of the lessor (creditor), unless there is a stipulation granting him that right.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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