The Commercial Sublease Agreement is essential when a business wants to sublease their commercial space to another party in Hong Kong. This document is commonly used when the original tenant needs to reduce their space commitment or generate additional income from unused space. The agreement must carefully balance the rights and obligations of all parties while ensuring compliance with Hong Kong property laws and the original head lease. It includes detailed provisions for rent, term, permitted use, maintenance, and other operational aspects. The document requires particular attention to Hong Kong's specific legal requirements regarding commercial property subleasing, including potential need for landlord consent and compliance with building regulations. This agreement type is crucial for businesses managing their real estate portfolios and requires careful consideration of both legal and commercial aspects.
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1. Parties: Identification of the Sublandlord (current tenant) and Subtenant, including full legal names and registration details
2. Background: Context of the sublease, including reference to the head lease and confirmation of authority to sublease
3. Definitions: Definitions of key terms used throughout the agreement
4. Demise: Specific details of the property being subleased and the grant of rights to the subtenant
5. Term: Duration of the sublease, including commencement and expiration dates
6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment
7. Security Deposit: Amount, payment terms, and conditions for return of the security deposit
8. Permitted Use: Specified authorized uses of the premises
9. Maintenance and Repairs: Responsibilities for maintaining and repairing the premises
10. Insurance: Required insurance coverage and responsibilities
11. Utilities and Services: Responsibility for utilities, services, and related charges
12. Alterations and Improvements: Rules regarding modifications to the premises
13. Assignment and Further Subletting: Restrictions on further assignment or subletting
14. Default and Remedies: Events of default and corresponding remedies
15. Termination: Circumstances and procedures for early termination
16. Compliance with Head Lease: Obligations to comply with head lease terms
17. Governing Law: Specification of Hong Kong law as governing law
18. Execution: Signature blocks and execution details
1. Break Clause: Optional provision allowing early termination under specific circumstances
2. Rent Review: Include when periodic rent adjustments are desired
3. Green Lease Provisions: Environmental and sustainability requirements, if relevant
4. Fit-out Works: Include when initial renovations or modifications are permitted
5. Operating Hours: Include for retail or specific commercial use restrictions
6. Signage Rights: Include when exterior or interior signage is relevant
7. Car Parking: Include when parking spaces are part of the sublease
8. Service Charge: Include when there are shared building services and costs
9. Guarantee: Include when a guarantor is required for the subtenant's obligations
1. Schedule 1 - Property Description: Detailed description of the subleased premises including floor plans
2. Schedule 2 - Head Lease: Copy or relevant excerpts of the head lease
3. Schedule 3 - Rent and Payment Schedule: Detailed breakdown of rent, payment dates, and escalation terms
4. Schedule 4 - Condition Report: Documentation of premises condition at commencement
5. Schedule 5 - Building Rules and Regulations: Applicable building rules and regulations
6. Schedule 6 - Permitted Alterations: Pre-approved alterations or improvements if any
7. Schedule 7 - Service Charges: Breakdown of service charges and calculation method
8. Appendix A - Plans and Drawings: Floor plans, layout drawings, and relevant architectural plans
9. Appendix B - Handover Inventory: List of fixtures, fittings, and equipment included in the sublease
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