What is a Commercial Sublease Agreement Review?
A commercial sublease agreement is a legal contract that enables a business tenant to rent out some or all of their leased rental space to a subtenant.
Since the tenant is still liable for payments should the subtenant not comply with the agreement terms, reviewing this agreement is essential to do before agreeing to it.
Read the rest of this article to explore what common terms appear in a commercial sublease agreement, how to review it for accuracy, and how hiring a qualified lawyer to provide an in-depth legal review can protect your financial interests.
What Key Terms Usually Appear in a Commercial Sublease Agreement?
A commercial sublease agreement usually contains the following terms.
- Rental space description. The commercial sublease agreement requires a clear and specific description of the property or space being rented.
- Effective dates. Check that agreement start and end dates are listed. Make sure that the agreement duration isn’t longer than that of the head lease.
- Rental amount. Calculate all monthly rental amounts and payment due dates for accuracy. The sublessee will pay the main tenant, who pays the landlord.
- Permitted usage. All permitted (and prohibited) commercial space uses must be outlined in the document to prevent misuse or disputes.
- Maintenance. The party responsible for maintenance and upkeep of the space must be clearly stated so all parties understand their obligations.
What are Tips for Reviewing a Commercial Sublease Agreement?
When reviewing a commercial sublease agreement, there are some things to look for so that you avoid potential challenges that can put you at risk of disputes. Here’s a rundown of some of them.
Verify Subtenant Obligations
Check that the agreement clearly states what the subtenant is responsible for, which could be based on what parties have previously agreed to. This includes paying the rental amounts on time, but it could also include activities such as property upkeep.
Clarify Liabilities
You want the agreement to clearly state how defaults will be handled, such as if there are late or missed payments. Usually, the head landlord can pursue remedies from the original tenant. This must be explicitly stated so that parties know who is liable in certain situations.
Refer to the Original Lease
Since the original lease can affect various aspects of the sublease agreement, such as what areas of the property can be leased to a subtenant, it’s essential to refer to the original lease to ensure consistency across contracts and prevent disputes.
Get Landlord Consent
Your agreement will require a space in which the landlord can sign it to give their consent. Without this section in the document, your agreement won’t be considered valid.
Specify Utility Bill Payments
A common error when drafting and reviewing a commercial sublease agreement is not ensuring that you’ve properly explained that the subtenant has to pay utility expenses. While you might assume that they know this is their financial obligation, the agreement should list all the expenses that are their responsibility.
Consider a Security Deposit
If the head lease included a security deposit, you might want your commercial sublease agreement to follow suit. This can benefit you as the main tenant by protecting you against property damage or contract breaches. Specify the security deposit amount and how it will be used.
Do You Need a Lawyer for a Commercial Sublease Agreement Review?
Since lawyers are experienced in dealing with commercial sublease agreements, they can help you to ensure your contract provides comprehensive details to protect your interests.
During a legal review of your contract, a lawyer can conduct the following activities to help you:
- They’ll check for consistency with the head lease to prevent inconsistencies and future disputes.
- They’ll consider all rental and other payments to ensure that financial obligations are clearly defined. This also serves to protect you against surprise charges.
- They’ll explain defaults, such as what constitutes a contract breach and what remedies are available for all parties involved in the agreement.
- They’ll unpack any legal jargon to make all clauses in the agreement clear and easy to understand, such as by explaining all parties’ obligations.
- They’ll outline the commercial space, such as by providing a thorough description of it. By noting any issues or defects in the commercial space being subleased, this will prevent future disputes over damages.
- They’ll negotiate any unfair or unbalanced provisions they’ve flagged in the contract with the other parties, should this be beneficial for you.
- They’ll revise the agreement by replacing ambiguous or unclear wording that can put you at hidden risk in future.
Where to Find and Hire a Lawyer for a Commercial Sublease Agreement
If you need to hire a lawyer to review your commercial sublease agreement, you don’t have to resort to calling law firms in your area. Instead, you can use an online legal platform that gives you quick and convenient access to a range of experienced lawyers who can help you with your contract review requirements.
ContractsCounsel is one of the largest online legal marketplaces. It connects you to a curated network of vetted lawyers, without you having to leave your home.
To request that a lawyer on ContractsCounsel reviews your commercial sublease agreement for accuracy and clarity, here are the easy steps to follow:
- Go to the ContractsCounsel marketplace, where it’s free to post your request for a contract review.
- Include some details of your project and what you require. You could mention if there are any sections in the agreement you’re concerned about.
- Wait to receive lawyer bids. Lawyers on the platform who want to work with you will send you bids.
- Select a lawyer based on their profiles. You can study the lawyers’ profiles and information, which includes their location, credentials, years of experience, and client rating for previous projects completed on the platform.
- Hire a lawyer who seems suitable for your requirements. They’ll charge a flat fee for a review of your commercial sublease agreement.