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What Is A Sublease?
A sublease, by legal definition, is a contract between a tenant and a sub-tenant to rent a residential or commercial space for a defined period. In a sublease, the property owner rents to a tenant who wants to vacate the premises without breaking any lease agreements and still pay rent. The tenant can rent the property to a sub-tenant under a sublease agreement.
Not all property owners permit subleases between tenants and sub-tenants. Speak with real estate lawyers in your state for specific legal advice and guidance.
Here is another article on what a sublease is .
How A Sublease Works
Subleases work by allowing an original tenant to rent a property or piece of land to a renter known as the sub-tenant. The sub-tenant addresses all property issues with the original tenant and not the property owner. Sublease laws vary from state-to-state as well.
Who Is Responsible For A Sublease?
The person who is responsible for a sublease is the tenant. Since the tenant is subleasing the property to a sub-tenant, the tenant will deal with them directly. The property owner or manager will not have any legal dealings with the sub-tenant.
As such, it is critical for tenants to recognize the amount of risk they are taking on when subleasing a property, apartment, or land. Failing to select the right sub-tenant or drafting an inadequate sublease agreement can result in major financial and legal issues. You should also consider the legality of subleases in your city, county, or state before negotiating an agreement with a prospective sub-tenant.
Are Subleases Legal?
Yes, subleases are legal. If your existing lease agreement does not specifically prohibit sublease, then it is generally permitted by law.
However, many laws and lease agreements require that you obtain your property manager’s written approval and consent for you to sublease your property. Specific state laws may also allow you to sublease your space, even if your property manager denies your request.
Other legal issues associated with subleases include:
- Subleasing could be illegal in your location
- Your lease may expressly prohibit the use of a sublease
- The sub-tenant damaging or destroying the leased property
- Property damage can exceed the amount of the original security deposit
- Issues can occur when there are numerous parties involved in the sublease
- Poorly written sublease agreements can cause more harm than good
- Problems most often arise when the sub-lessee stops paying rent
When considering subleasing your rental, make sure you carefully consider all of the facts and circumstances. Working with real estate lawyers to help you gain compliance or negotiate with your landlord. Due to the risk level involved with subleases, it is wise to work with a legal professional throughout the entire course of your relationship with a sub-tenant.
Here is an article on the pros and cons of a sublease .
Sublease agreements are the contracts that govern the relationship between the original tenant and a sub-tenant. There are specific considerations that you should be making when writing and executing sublease agreements, including key terms and specialized clauses.
Key Terms Of A Sublease Agreement
It is crucial to incorporate the key terms of a sublease agreement for it to be legally binding. Every contract is unique. However, there are commonalities among each document of which you should be aware.
These are the key terms of a sublease agreement:
- Location and description of the property
- Name and address of the original tenant
- Name and address of the sub-tenant
- The start and end dates of the sublease
- The terms and conditions of the original lease
- The amount of rent due
- The frequency of rent and payment options
- Acknowledgements of the parties
In addition to key terms, there are also sublease clauses that will further protect your financial and legal rights.
Sublease clauses are used when complicated agreements are involved. There are specific clauses that property owners can use to protect profits, income channels, and property values. These critical sublease clauses will protect your legal and financial interests.
Examples of sublease clauses include:
- Assuming the lease responsibility
- Protecting intellectual property (IP)
- Right of Recapture
- Non-Compete Clauses
- Right to Reject a Subtenants
Unlike residential terms, commercial transactions may require specific legal and industry knowledge to draft an adequate agreement. Subleases can be great sources of income for these types of entities. However, you should always speak with real estate lawyers for information regarding the transaction-specific to your situation.
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Types of Subleases
There are different types of subleases, including a sublet. Leases are not the same as subleases since they shift the legal and financial responsibility to another party.
These are the differences between a sublease vs. lease and a sublease vs. sublet:
Sublease vs. Lease
Leases are a type of rental lease agreement between a landlord and a tenant. They can be residential or commercial leases . In contrast, a sublease occurs between a tenant and a third-party individual who will pay rent and live in the unit for a partial or total remainder of the original rental agreement.
When drafting a lease, ensure you use the right template. For example, a residential lease should use a residential lease agreement template. Property lawyers can help you select the right document to use.
Here is an article about a sublease vs. a lease .
Sublease vs. Sublet
Sublets, also known as relets, allow new renters to assume responsibility for a lease directly with the property owner or manager. Under a sublet, the landlord handles tenancy issues. Use a sublet agreement when writing a contract for a sublet.
A sublease is when the new renter deals directly with the tenant. Under a sublease, the renter acts as the property manager. Use a sublease agreement when writing a contract to legally manage this relationship.
Get Help with a Sublease Agreement
When you need to get help with a sublease agreement, hire real estate lawyers . Their rates are generally reasonable and will avoid all legal mistakes. In addition to negotiation on behalf of your interests when drafting a sublease agreement, they can provide many other vital services.
Real estate lawyers will help you with a sublease agreement in the following ways:
- Review the sublease agreement and supplementation documentation
- Offer legal advice and guidance when it comes to inspection matters
- Avoid critical deadlines and notification dates
- Work with the parties to get the document signed
- Ensure that all elements of the sublease agreement meet federal and state laws
- Explain clients’ legal rights using simple terms
Subleases can involve a significant amount of paperwork, especially for commercial transactions. The negotiation process may also take several weeks or months to finalize. However, real estate lawyers will interpret any legal definition for you while discussing how it applies to your situation.
Other legal issues may arise during the sublease agreement’s signing. While some are easy to resolve, there are others that may require a well-defined legal strategy. Real estate lawyers will advise you about the opportunities and limitations associated with key decisions and reviewing any potential issues that could arise in the future.
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Meet some of our Sublease Lawyers
Attorney Greg Corbin is the founder and principal of Signal Law in Denver, Colorado. A top-rated trial and transactional lawyer with more than seven years of total legal experience, Mr. Corbin provides exceptional counsel and support to clients across the greater Denver metro and surrounding areas who have legal needs involving any of the following: business and corporate law; contracts and agreements; incorporations, partnerships and other entity formation and dissolution services; and ongoing business counsel for emerging and expanding commercial enterprises. Utilizing the latest in cost-saving technologies and advanced automation, Mr. Corbin has established his practice as a modern law firm ready for the future, and he strives to provide the highest level of representation to his clients and help them achieve their goals and the favorable outcomes they seek as efficiently and cost-effectively as possible. He has gained a reputation for his innovative solutions as well as his transparent pricing structure and responsiveness when dealing with his clients. In recognition of his outstanding professionalism and service, Mr. Corbin has earned consistent top rankings and endorsements from his peers as being among the top lawyers in his region for business law and transactions. A 2008 graduate of Kansas State University, Mr. Corbin obtained his Juris Doctor from Boston University School of Law in 2013. The Massachusetts Bar Association admitted him to practice that same year, and the Colorado State Bar Association admitted him in 2015. Mr. Corbin is an active member of the Denver Bar Association and the Colorado State Bar Association, among his other professional affiliations, and he supports his local community through his involvement with Project Worthmore and Biking for Baseball, where he serves on the boards of directors.
The Law Office of David Watson, LLC provides comprehensive and individualized estate-planning services for all stages and phases of life. I listen to your goals and priorities and offer a range of estate-planning services, including trusts, wills, living wills, durable powers of attorney, and other plans to meet your goals. And for convenience and transparency, many estate-planning services are provided at a flat rate.
Experienced contracts and business attorney with years of experience advising entrepreneurs and small businesses. Currently act as general counsel to multiple companies with millions in annual revenue. My specialty is creative legal problem solving with solutions tailored to your business.
My career interests are to practice Transactional Corporate Law, including Business Start Up, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, and Intellectual Property Law. I am currently licensed in Arizona and Pennsylvania, after having moved to Phoenix in September 2019. I am currently General Counsel for a bioengineering company. I handle everything from their Mergers & Acquisitions, Private Placement Memorandums, and Articles of Amendment to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. I have 4 years experience handling commercial breach of contract cases working with Burton Neil & Associates, P.C. I have experience with Intellectual Property infringement after having worked for Ryley Carlock & Applewhite. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, mergers and acquisitions and also trademark registration and licensing.
Atilla Z. Baksay is a Colorado-based attorney practicing transactional and corporate law as well as securities regulation. Atilla represents clients in the negotiation and drafting of transactional (e.g. master service, purchase and sale, license, IP, and SaaS agreements) and corporate (e.g. restricted stock transfers, stock options plans, convertible notes/SAFE/SAFT agreements, bylaws/operating agreements, loan agreements, personal guarantees, and security agreements) contracts, in-house documents (e.g. employment policies, separation agreements, employment/independent contractor/consultant agreements, NDAs, brokerage relationship policies, and office policy memoranda), and digital policies (e.g. terms of service, privacy policies, CCPA notices, and GDPR notices). Atilla also reviews, and issues legal opinions concerning, the security status of digital currencies and assets. Following law school, Atilla practiced international trade law at the Executive Office of the President, Office of the United States Trade Representative, where his practice spanned economic sanctions enacted against goods originating in the People’s Republic of China valued at $500 billion. Afterwards, Atilla joined a Colorado law firm practicing civil litigation, where the majority of his practice comprised of construction defect suits. Today, Atilla's practice spans all corporate matters for clients in Colorado and the District of Columbia.
After graduating from The University of Chicago Law School in 2002, Clara spent eight years in private practice representing clients in complex commercial real estate, merger and acquisition, branding, and other transactional matters. Clara then worked as in-house counsel to a large financial services company, handling intellectual property, vendor contracts, technology, privacy, cybersecurity, licensing, marketing, and otherwise supporting general operations. She opened her own practice in September of 2017 and represents hedge funds, financial services companies, and technology companies in a range of transactional matters.
I love contracts - and especially technology-related contracts written in PLAIN ENGLISH! I've worked extensively with intellectual property contracts, and specifically with IT contracts (SaaS, Master Subscriptions Agreements, Terms of Service, Privacy Policies, License Agreements, etc.), and I have built my own technology solutions that help to quickly and thoroughly draft, review and customize complex contracts.