The sublease agreement is an important legal document which binds the lessee and the owner into a contractual agreement for the certain use of the asset. This can be for rental purposes where the asset becomes a tangible property. The properties of a sublease agreement are very similar to that of a license where the lessee is entitled to the use of both tangible and intangible property. The intangible properties can be radios, computers etc. The arrangements of the sublease agreement may vary according to the clauses mentioned in the contract. The lease can also be cancelled as per the wishes of either lessee or the owner. There are broadly two types of agreements in this case: the cancellable and the non-cancellable sublease agreement. Both these types can be cancelled accordingly.
The sublease agreement must contain specific guidelines clearly mentioned in the document. There are specific responsibilities that the lessee must ensure so that he or she is not subjected to the scrutiny of the law. The basic responsibility is the payment of rent as per the guidelines in the agreement. The fee is to be negotiated before the sublease agreement is drawn between the lessee and the owner. Residential properties are the most common type of properties that are sub let by any owner. The time is also clearly specifies within the document. The sublease agreement is quite similar to the license where the lessee can use the property as per his wishes but the ownership lies in the hands of the owner. The lease needs to specify the time line within which the lessee needs to surrender the use of the property. There are generally a few categories of sublease agreement:
- Tenancy at will
- Fixed-term tenancy
- eriodic tenancy
- Tenancy at sufferance
he sublease agreement is prepared keeping in mind certain elements that are commonly used. It is important to follow these guidelines while preparing the agreement:
- Names of both parties
- Date and duration of the contract
- Specific object that is leased
- Conditions for renewal
- Security deposit and the amount
- Provisions to return security deposit after completion of lease
- Insurance documents of the lessee incase of damage.
- Responsibility of maintenance.
There might be different patterns that are followed in the United States regarding the sublease agreement but these are the general terms and conditions that must be followed.
[Also Read: Sublet Agreement]