A Deed of Sublease is utilized in situations where an existing tenant wishes to transfer partial or full use of their leased premises to another party while maintaining the original lease agreement. This document type is particularly important in the Philippine business context, where subleasing is common in commercial and residential properties. The deed must carefully balance the rights and obligations between all parties while ensuring compliance with Philippine property laws and the Civil Code. It typically includes detailed provisions about the premises, term, rent, permitted use, maintenance obligations, and the relationship with the head lease. A properly executed Deed of Sublease helps protect all parties' interests and ensures clarity in complex three-party leasing arrangements.
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1. Parties: Identification of all parties including the head lessor (if required), sublessor, and sublessee, with their complete legal names and addresses
2. Background: Context of the sublease, including reference to the head lease and confirmation of authority to sublease
3. Definitions: Definitions of key terms used throughout the deed, including 'Premises', 'Head Lease', 'Term', and other relevant terms
4. Grant of Sublease: Formal grant of the sublease and description of the subleased premises
5. Term: Duration of the sublease, including commencement and expiration dates
6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and other financial terms
7. Use of Premises: Permitted use of the premises and any restrictions
8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements
9. Utilities and Outgoings: Responsibility for utilities, taxes, and other expenses
10. Insurance: Required insurance coverage and responsibilities
11. Compliance with Head Lease: Sublessee's obligations to comply with head lease terms
12. Assignment and Further Subletting: Restrictions on assignment or further subletting
13. Default and Termination: Events of default and termination provisions
14. Surrender of Premises: Requirements for returning the premises at the end of the term
15. Governing Law: Specification of Philippine law as governing law
16. Execution: Formal execution clause and signing requirements
1. Option to Renew: Include when parties agree to possible lease renewal terms
2. Fit-out Works: Include when sublessee is permitted to perform initial modifications to the premises
3. Break Clause: Include when early termination options are provided to either party
4. Right of First Refusal: Include when sublessee is granted first right to lease premises directly or purchase property
5. Guarantees: Include when additional security is required from sublessee
6. Environmental Matters: Include for properties where environmental compliance is significant
7. Operating Hours: Include for commercial properties with specific operating hour restrictions
8. Signage Rights: Include for commercial properties where exterior or interior signage is relevant
1. Schedule 1 - Property Description: Detailed description of the subleased premises including floor plans and boundaries
2. Schedule 2 - Head Lease: Copy or relevant excerpts of the head lease agreement
3. Schedule 3 - Rent Schedule: Detailed breakdown of rent payments and escalation terms
4. Schedule 4 - Condition Report: Description of premises condition at commencement of sublease
5. Schedule 5 - House Rules: Building rules and regulations applicable to the premises
6. Appendix A - Fit-out Guidelines: Technical specifications for any permitted modifications
7. Appendix B - Permits and Certificates: Copies of relevant permits, certificates, and approvals
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