Section 240 — Property Law Act 2007: Transferee or assignee becomes lessee

240 Transferee or assignee becomes lessee (1) A person who accepts a transfer or assignment of a lease becomes the lessee of the land without need to— (a) acknowledge (by attornment or otherwise) the lessor as the lessor of the land; or (b) take possession of the land. (2) If a lease contains a covenant that the lessee will not, or will not without the lessor’s consent, transfer or assign the lease, a transfer or assignment of the lease by the lessee has effect whether or not— (a) the lessor has consented to the transfer or assignment; and (b) the transfer or assignment is in breach of that covenant. (3) A person who becomes the lessee under this section— (a) must pay to the lessor the rent payable under the lease; and (b) must observe and perform all covenants of the lessee; and (c) may enforce all covenants of the lessor. (4) Subsection (3) applies whether or not any covenant referred to in that subsection relates to a subject matter that— (a) was not in existence when the covenant was made; or (b) refers to the subject matter of the lease. (5) Subsection (3) does not apply to a covenant that, immediately before the transfer or assignment, was not binding on the lessee, or on the lessor, as the case requires. (6) To avoid doubt, subsection (2) does not prevent the lessor from— (a) re-entering the land peaceably (and without committing forcible entry under section 91 of the Crimes Act 1961); or (b) cancelling the lease; or (c) making a claim for a breach of the covenant referred to in that subsection.