In an assignment of an existing lease, who receives the purchase monies and the apportionment of ground rent and service charge?

• A. Buyer
• B. Tenant
• C. Landlord
• D. Seller

Answer: (D)

On an assignment of an existing lease, the seller receives the purchase monies. Any apportionment of ground rent and service charge is settled so that the seller is credited for the portion up to completion, while the buyer takes responsibility for the portion after completion. In other words, the money and the apportionment flows are aligned with the seller as the party selling the lease, with the buyer stepping in after completion. The landlord would collect rent from the tenant (the buyer) for the period after completion, but the question of who gets the purchase price and the apportionment points to the seller.