The Sublease Addendum is a crucial legal instrument in Philippine property law, used when an existing tenant wishes to lease all or part of their rented property to another party. This document serves as a supplement to the original lease agreement, establishing the legal framework for the sublease arrangement while ensuring compliance with Philippine Civil Code requirements and local property regulations. It becomes necessary when businesses need to optimize their space usage, reduce costs, or accommodate changing space requirements. The addendum typically includes essential provisions such as the precise description of the subleased space, rental terms, duration, security deposits, and the specific rights and obligations of the sublessee, all while maintaining the original lease's validity. It requires careful drafting to ensure all parties' interests are protected and that all arrangements comply with both the master lease terms and Philippine law.
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1. Parties: Identification of all parties including the original landlord, tenant (sublessor), and sublessee with complete legal names and addresses
2. Background: Reference to the original lease agreement including its date, parties, and property description; statement of sublessor's right to sublease
3. Definitions: Key terms used in the addendum, including references to terms from the original lease that remain applicable
4. Subleased Premises: Detailed description of the portion of the property being subleased, including any shared areas or facilities
5. Term and Commencement: Duration of the sublease and its relationship to the master lease term
6. Rent and Payment Terms: Sublease rent amount, payment schedule, and method of payment
7. Security Deposit: Amount, terms, and conditions for the security deposit specific to the sublease
8. Relationship to Master Lease: Confirmation that sublease is subject to master lease terms and specification of which original lease terms apply
9. Compliance Requirements: Sublessee's obligations to comply with master lease terms and any additional requirements
10. Execution and Notice: Signature requirements, notice provisions, and contact information for all parties
1. Utilities and Services: Used when utility responsibilities differ from the master lease or need specific allocation between sublessor and sublessee
2. Maintenance and Repairs: Include when maintenance responsibilities need to be specifically allocated between parties
3. Insurance Requirements: Used when additional insurance requirements are imposed on the sublessee
4. Use Restrictions: Include when specific use limitations or requirements differ from or add to master lease terms
5. Improvements and Alterations: Used when sublessee is permitted or restricted from making changes to the premises
6. Assignment and Further Subletting: Include when addressing whether further subletting or assignment is permitted
7. Original Landlord's Consent: Used when specific terms of the landlord's consent need to be documented
8. Early Termination Rights: Include when parties agree to specific early termination provisions
1. Schedule A - Floor Plan: Detailed plan showing the subleased portion of the premises and any shared areas
2. Schedule B - Master Lease: Copy of the original lease agreement referenced in the sublease addendum
3. Schedule C - Landlord's Consent: Written consent from the original landlord permitting the sublease
4. Schedule D - Condition Report: Documentation of the premises condition at the start of the sublease
5. Schedule E - House Rules: Any specific rules or regulations applicable to the sublessee
6. Schedule F - Payment Schedule: Detailed breakdown of rent payments, due dates, and any escalation provisions
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