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29 When a lease is finalized, the landlord and tenant then have privity of contract and privity of estate. See Francini v. Canuck Properties Ltd. (1982), 35 O.R. (2d) 321 (C.A.), at pp. 322‑23. When the lease is assigned, the landlord’s privity of estate with the original tenant comes to an end, but the privity of contract continues and the original tenant remains liable upon its covenant. The estate or interest in the tenancy is transferred to the assignee, who, by being entitled to possession, is obliged to make payment of rent, but, subject to the terms of the lease and the agreement of the parties, the original tenant remains liable should his assignee not pay the rent. See C. S. Goldfarb, “The Rights and Obligations of the Original Tenant and Subsequent Tenants after an Assignment of Lease”, in H. M. Haber, ed., Assignment, Subletting and Change of Control in a Commercial Lease (2002), 157.
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