The Sublet Tenancy Agreement is a crucial document used when an existing tenant wishes to lease all or part of their rented property to another party in the Philippines. This arrangement creates a complex three-way relationship between the superior landlord, original tenant (sub-lessor), and subtenant, requiring careful consideration of both the original lease terms and Philippine property law. The document is particularly relevant in urban areas where property sharing and flexible leasing arrangements are common. It includes detailed provisions for rent, maintenance responsibilities, security deposits, and compliance requirements, while ensuring alignment with the Civil Code of the Philippines and local rental regulations. The agreement is essential for protecting all parties' interests and establishing clear guidelines for the subletting arrangement, especially important given the unique aspects of Philippine property law and common local practices in both residential and commercial contexts.
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1. Parties: Identifies all parties: the original tenant (sub-lessor), the subtenant (sub-lessee), and acknowledges the superior landlord
2. Background: Establishes the context of the original lease and the right to sublet
3. Definitions: Defines key terms used throughout the agreement including Property, Original Lease, Term, Rent, etc.
4. Grant of Sublease: Formal grant of the sublease and specification of the property or portion being sublet
5. Term and Renewal: Duration of the sublease and any renewal options, ensuring it doesn't exceed the original lease term
6. Rent and Payment Terms: Specifies rent amount, payment schedule, method of payment, and any escalation clauses
7. Security Deposit: Details of the security deposit amount, terms of holding, and conditions for return
8. Utilities and Other Charges: Responsibility for utility payments and other associated costs
9. Use of Property: Permitted use of the property and any restrictions
10. Maintenance and Repairs: Responsibilities for maintenance and repairs between sub-lessor and subtenant
11. Sublessee Obligations: Key obligations including compliance with original lease terms and building regulations
12. Sub-lessor Obligations: Sub-lessor's duties including maintaining the original lease and passing on notices
13. Insurance: Insurance requirements for both parties
14. Default and Remedies: Consequences of breach and available remedies
15. Termination: Grounds and process for early termination
16. Governing Law: Specifies Philippine law as governing law and jurisdiction
17. Execution: Signature blocks and execution requirements
1. Superior Landlord's Consent: Required if the original lease mandates landlord's consent for subletting
2. Fit-out Works: Include if subtenant is permitted to make alterations or improvements
3. Common Areas: Required if the property is part of a larger building with shared facilities
4. Pest Control: Include in tropical locations or if there's a history of pest issues
5. Natural Disasters: Include specific provisions for typhoons and natural disasters common in the Philippines
6. Option to Purchase: Include if subtenant is given any option to purchase the lease rights
7. Guarantor Provisions: Required if a guarantor is needed for the subtenant's obligations
1. Schedule 1 - Property Description: Detailed description of the sublet property including floor plans and boundaries
2. Schedule 2 - Original Lease: Copy or relevant excerpts of the original lease agreement
3. Schedule 3 - Inventory and Condition Report: Detailed inventory and condition of the property and any furnishings
4. Schedule 4 - House Rules: Building or development rules and regulations if applicable
5. Schedule 5 - Utilities Reading: Initial meter readings for utilities at handover
6. Schedule 6 - Fit-out Guidelines: If applicable, guidelines for any permitted alterations or improvements
7. Appendix A - Superior Landlord's Consent: Written consent from the superior landlord if required
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