Subleases

Subleases

Our lease lawyers are experienced in negotiating in drafting simple and complex sublease and assignment of lease documents.

It is critical to ensure that these leases are drafted correctly and clearly and that terms and conditions outline the responsibilities for all parties and that they are not ambiguous or open to dispute in the future.

How Subleases & Assignments of Lease Work

Subleases

A sublease is when an existing tenant leases part of their leased premises to another tenant, who will then be the sub-tenant or sublessee. A typical example is when a tenant who operates a business out of a factory decides that the whole area is not needed and finds someone to “sublease” that area from the them. The sublessor tenant will remain legally responsible to the landlord for the whole of the premises in spite of the sublease. As the subleasee and sublessor usually have a close-working relationship, it is important that each party has a clearly defined sublease to prevent issues from arising.

A transfer of lease (also known as an assignment of lease) is typically used when a business changes hands. It involves the whole lease being transferred for assigned to the new business owner and, often the outgoing tenant can be absolved of all responsibility in relation to the lease. It is critical to ensure that when you are assigning a lease that your rights and responsibilities are correctly transferred and if you are the original tenant that your liability is fully transferred to the assignee. This may not always be the case.

Our lawyers can advise you on your rights and assist you in negotiating consent to sublease or a transfer (assignment) of lease from advising you of your rights and responsibilities through to the preparation and complete exchange of lease documents.

We can draft sublease or transfer of lease documentation or advice you on leasing documents that have been drafted by another party’s lawyers to ensure that you are fully protected.

If a sublease is poorly drafted or not customised to your circumstances disputes can arise and they can be a costly distraction to your business.

If you are requiring an assignment of lease we can also assist from initial negotiation and advice to drafting and full execution of a new lease. There are many issues to consider when looking at an assignment of lease and in some instances the landlord may decide to terminate the existing lease and enter into a new lease with the tenant. Our property lawyers have extensive experience and can take a holistic and micro view of leasing issues depending on what is required.

It is critical to ensure that when you are assigning a lease that your rights and responsibilities are correctly transferred and if you are the original tenant that your liability is fully transferred to the assignee.

Concise Legal Advice. Commercial Understanding.

Our legal team are not only trained in the legal aspects but, we also understand the commercial realities of leasing and property law. Our approach is to not provide the best advice with neglecting the commercial realities of your matter.

Call us now on 1300 907 335 or fill out the enquiry form on this page.

 

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