Lease Agreement Sublease Clause

(a) Example – Upon receipt of the Tenant`s written notice of the Tenant`s desire to assign or sublet the Premises or any part thereof, or the Tenant`s written notice of the Tenant`s rental prices and terms to which the Tenant intends to seek a subtenant or assignee (other than an affiliated tenant), the landlord can notify the tenant in writing within 30 days of receiving the tenant`s notice. notify. terminate this Rental Agreement in respect of the space described in the Renter`s termination on the date specified in the Renter`s termination for the commencement of the proposed assignment or sublease. The tenant may withdraw his notice of termination for subletting or assignment by notifying the landlord within 10 days after the landlord has notified the tenant of the termination, in which case the lease does not end but will be continued. If the Landlord has previously indicated that it will not exercise a right of recovery as set out above, the Landlord will be bound by this decision relating to the proposed sublease or assignment, which will then be requested. An assignment and sublease clause describes the rights and obligations of the landlord and tenant with respect to the transfer of the tenant`s interests under a lease by a tenant. Generally, the purpose of the assignment and sublease clause is to provide the landlord with protection against fugitive tenants and/or fugitive subtenants and to ensure that the landlord receives rental income. To this end, an assignment and sublease clause restricts the circumstances in which the tenant may sublet the premises, usually only with the landlord`s written consent, after the landlord has the opportunity to review the tenant`s proposed sublease. In addition, an assignment and sublease clause binds the tenant and subtenant under the terms of the original lease and ensures that the tenant is primarily responsible for the premises and their rental. In this context, an assignment and sublease clause performs the following functions: In addition, it is invariably more difficult to resolve problems related to subletting if there is no legally binding clause in the lease agreement. An assignment and subletting clause defines the tenant`s rights in relation to the transfer of the tenant`s share to the rented premises. At its core, an assignment and sublease clause provides answers to the following questions: Including this requirement in the sublease clause of your lease ensures that tenants get your explicit permission before starting the sublease process.

One last note is to make sure you have the original tenant`s contact information as well as their new address (if they move out of town), as they are still the ones who are legally bound by your current lease, not the subtenant and not being able to get in touch with them could prove incredibly problematic! (a) Example – No Waiver. The Landlord`s consent to an assignment or sublease does not release the Tenant or the Assignee of this Lease or the Subtenant of the Premises from obtaining the Landlord`s consent to any other assignment or sublease, nor does it release the Tenant or any assignee or subtenant of the Tenant from any primary liability under the Lease. Acceptance of rent under this Agreement or acceptance of performance of any other condition by any other person or entity shall not be deemed a waiver of any provision of this Agreement or consent to any sublease, assignment or other transfer of the Premises. 1.1. Indicate the landlord`s right to review the proposed transfer and set the conditions for refusing the transfer. – Another important function of an assignment and sublease clause is to give the landlord the power to review the proposed transfer of the tenant`s shares in the lease. The landlord usually reserves the right to review a proposed transfer to ensure that the transfer does not affect the landlord`s interest in the premises. The landlord can also set minimum conditions for a proposed transfer. For example, a landlord may want assurance that the proposed transfer maintains the integrity of the overall image of the building (see notes below). Subletting and ordering: what`s the difference? Subletting and assignment involve the transfer of your rental obligations to another tenant. However, there are legal and practical differences between subletting and ordering.

While these are the four main functions of an assignment and sublease clause, commercial leases tend to be more complicated, as described below. .