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The usual use for a sublease is to lease part of the existing leased premises to someone else. For example, a tenant with a large space may have surplus space. It makes good commercial sense to rent the excess space to another, often associated, business.

The area of the sublease premises need to be properly defined and the term of the sublease carefully considered so that it is consistent with the head lease.

The sublessor (who is also the tenant under the head lease), who will be responsible for the acts of the sublessee, needs to ensure that there are appropriate protections in place in guarantees and indemnities. In this respect, the sublessor effectively becomes the sublessor’s landlord.

Subleases seem simple but are actually quite complex to draft – and they must right in order to protect the landlord, the sublessor and the sublessee.

We adviseare experienced in advising landlords, tenants and sub- tenants. We can also seek landlord consent and/or mortgagee consent to a proposed sublease.

To speak with one of our property dispute lawyers call us today on 1300 907 335. Alternatively, please fill out the contact form on this page for and one of our lawyers will be right back to you.

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