The Sublease Agreement is a critical legal instrument used in the Philippines when an existing tenant wishes to transfer their leasehold rights to another party while maintaining their obligations under the original lease. This document is essential in both commercial and residential contexts, requiring careful consideration of Philippine property laws, including the Civil Code of the Philippines, the Rent Control Act, and local government regulations. It's particularly relevant when tenants need to relocate before their lease expires, want to share space costs, or businesses need to optimize their leased space. The agreement must address key aspects such as rent payments, security deposits, maintenance responsibilities, and ensure compliance with the master lease terms. Importantly, it often requires the original landlord's consent and must be structured to protect all parties' interests while adhering to Philippine legal requirements.
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1. Parties: Identifies the original tenant (sublessor), the new tenant (sublessee), and acknowledges the original landlord
2. Background: Outlines the existing master lease and the intent to sublease, including confirmation of any required landlord consent
3. Definitions: Defines key terms used throughout the agreement, including Property, Term, Master Lease, etc.
4. Grant of Sublease: Specifies the property being subleased and confirms the sublessor's right to sublease
5. Term and Renewal: Defines the duration of the sublease and any renewal options, ensuring it doesn't exceed the master lease term
6. Rent and Security Deposit: Details the rent amount, payment schedule, security deposit requirements, and utility responsibilities
7. Use of Premises: Specifies permitted uses of the property and any restrictions
8. Maintenance and Repairs: Outlines responsibilities for property maintenance and repairs between parties
9. Compliance with Master Lease: Requires sublessee to comply with master lease terms and not cause violations
10. Insurance and Liability: Specifies required insurance coverage and liability responsibilities
11. Default and Remedies: Defines events of default and available remedies for both parties
12. Governing Law: Establishes Philippine law as governing law and jurisdiction for disputes
13. Signatures: Space for parties to execute the agreement with proper attestation
1. Improvements and Alterations: Include when sublessee is permitted to make modifications to the property
2. Assignment and Further Subletting: Include when there's a need to address whether further subletting is permitted
3. Early Termination Rights: Include when parties agree to specific early termination provisions
4. Furniture and Equipment: Include when the sublease includes furniture or equipment
5. Special Use Provisions: Include for commercial properties with specific use requirements or restrictions
6. Guarantor Provisions: Include when a guarantor is required for the sublease
7. Option to Purchase: Include when sublessee is granted an option to purchase the property
8. Common Area Usage: Include for properties in multiple-occupancy buildings or complexes
1. Schedule A - Property Description: Detailed description of the subleased property, including floor plans or maps
2. Schedule B - Master Lease: Copy or relevant excerpts of the master lease agreement
3. Schedule C - Inventory List: Detailed list of any furniture, fixtures, or equipment included in the sublease
4. Schedule D - Condition Report: Documentation of property condition at start of sublease
5. Schedule E - House Rules: Building or property rules and regulations
6. Appendix 1 - Landlord's Consent: Written consent from the original landlord for the sublease
7. Appendix 2 - Payment Schedule: Detailed breakdown of rent payments, deposits, and other financial obligations
8. Appendix 3 - Maintenance Schedule: Schedule of regular maintenance responsibilities and procedures
Relevant legal definitions
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Relevant Industries
Real Estate
Commercial Property
Residential Property
Retail
Office Space
Industrial
Hospitality
Education
Healthcare
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Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Administration
Compliance
Risk Management
Property Management
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Relevant Roles
Property Manager
Real Estate Manager
Facilities Manager
Legal Counsel
Contract Administrator
Leasing Agent
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Property Administrator
Compliance Officer
Risk Manager
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Real Estate Director
Office Manager
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