Commercial Sublease Agreement

The commercial sublease agreement must define the conditions of the sublease. Like a commercial lease agreement, the commercial sublease agreement must also include:

The duration of the sublease and the rules that articulate the relationship between the duration of the sublease and that of the lease. The best solution for a compliant sublease is to copy the clauses binding the lessor to the principal lessee. Thus, with template document, you will have a complete commercial sublease agreement that will protect you and the premises.

The landlord’s authorization is essential. The commercial lease may contain a clause providing for this authorization. The lessor’s agreement can be given by a letter of acceptance or by a clear and unequivocal attitude. The silence of the landlord does not constitute acceptance. You can find a model in our document consent to sublet. In case of unauthorized subletting, the landlord can terminate the tenant’s lease or refuse to renew it without having to pay eviction compensation. In this case, the subtenant has no rights.

The lessor must intervene in the act of subletting unless the commercial lease exempts the lessee from its obligation to call upon the lessor to participate in the act. This is the case when a clause between the lessor and the lessee authorizes the sublease of the premises. When subletting is authorized, it is recommended that the lessee inform the lessor of his intention to sublet. In this way, the lessor will be able to issue his authorization or his refusal according to the activity of the sublessee.

It is not mandatory to have a written commercial sublease agreement, but it is strongly recommended to do so and to ask the lessor’s agreement in writing. With a written contract, the risk of later problems is greatly reduced. In addition, the subtenant can request the commercial sublease agreement and will have to show this document in order to register his company for VAT and social security.

If the commercial lease agreement signed between the lessor and the landlord does not allow the lessor to sublet the premises, then the landlord is entitled to refuse the sublease.

If there is a clause allowing subletting, the landlord will have to analyze the following elements:

The amount of the sublease is freely determined by the lessee provided that the lessor has agreed to the sublease. Also, it is advisable to inform the lessor of the sublease price in the case of a sublease that exceeds the amount of the initial lease. Indeed, the lessor often refuses to allow the lessee to use his commercial premises to make a profit.

The parties are free to terminate their commercial sublease agreement. However, the contractual terms governing such termination must be respected. The commercial sublease agreement generally contains the same clauses as the main contract. Therefore, the terms of notice in the sublease agreement must be respected. If there is no termination clause in the contract, the requirements of the original contract should be followed in the event that the sublease contract refers to the provisions of the original contract.