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Sublease of an apartment or premises–how to compile a lease contract with a subtenant

 

What is sublease?

 

Sublease is a transfer of the leased real estate (property) for lease to a third person. According to a sublease contract, the Lessee transfers a part or the whole premises for a certain period to a Sublessee for use at the lessor’s consent. 
 

In case of sublease two lease contracts are concluded:

1. Master lease contract with the right to sublease
2. Sublease contract between the previous and the new lessee.
 

The participants of such contracts are referred to as:

  • The Owner – theLessor (appears in a master contract)
  • The Lesseein master contract is referred to as theLessee, in sublease contract is referred to as theSublessor
  • The Sublessee appears in a Sublease Contract.
 

Sublease and lease: a sublease contract may not exist without a master lease contract:

  • The period of a sublease contract may not exceed the period of a real estate master lease contract.
  • In case of early termination housing’s lease contract cease to be effective sublease contract at the same time. 
  • The existence of sublease contract depends on sublessor and as well as of property’s owner. 
  • Renter becomes secondary lessor after making sublease contract, but as before, it is a full participant original treaty for lease. As sublease contract is a derivative, therefore its legal existence 
  • depends on master contract.
 
 
 

At what conditions may you sublease real estate?

According to the law, the lessor has a right to sublease real estate only at the consent of the property owner or the authorised person.
  • The owner should give consent for the sublease in writing as an answer to the lessee’s request.
  • In practice, the majority of lease contracts already contain a sublease clause. In some cases, the owner (or its representative) directly prohibits the user to sublease the real estate, in other cases — allows, but every time the user should request the owner’s consent. The owner gives consent to sublease in advance (or without limitations or with some cautions) and quite often gives the user a right to definite its conditions and choose sublessees on its own.
 

On the period of real estate sublease:

  • We should understand that a sublease contract is a derivative contract, that is why it may not be concluded for a period that exceeds the period of validity of the master lease contract.
  • The potential sublessees should thoroughly learn the conditions of a master contract about its period of validity and the possibilities of early termination of the contract.
  • Moreover, limitation of the period of sublease may include the owner’s answer to the lessee’s request to give consent for sublease (such request and answer to it are attached to contract).
 

Responsibility in sublease contract:

  • The owner of real estate (or its representative) and sublessee are not bound with each other with any contractual obligations, therefore they may not make mutual demands directly. For example, if a sublessee violates asublease contract, the sublessor will be responsible for the subtenant’s actions before the owner. Therefore, some sublessees may make the wrong conclusion that they will not be punished for violating the contract conditions. They are guided by a cast-iron logic: they do not have direct contract with the owner, so, the latter may not file any claims against them, and the sublessor also does not have the right to it, because the property does not belong to him. But, according to the law, the sublessee is responsible before the sublessor and the latter may apply for court actions.
 

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