The Sublease Contract Agreement is a vital legal instrument used in Pakistani property transactions when an existing tenant wishes to transfer partial or full use of their leased premises to another party. This document is essential for businesses and individuals looking to optimize their leased space or manage excess capacity while maintaining their original lease obligations. The agreement must comply with Pakistani property law, including the Transfer of Property Act 1882 and relevant Provincial Rent Control Acts, and typically requires the original landlord's consent. It outlines crucial elements such as premises details, term duration, rent payments, maintenance responsibilities, and use restrictions. This type of agreement is particularly important in commercial contexts where flexibility in property utilization is needed while ensuring legal protection for all parties involved. The document must carefully balance the interests of the sublessor, sublessee, and original landlord while maintaining consistency with the master lease terms.
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1. Parties: Identification of the sublessor (original tenant) and sublessee, including full legal names, addresses, and registration details if companies
2. Background: Context of the sublease, including reference to the master lease and confirmation of authority to sublease
3. Definitions: Key terms used throughout the agreement, including 'Premises', 'Term', 'Master Lease', 'Rent', etc.
4. Grant of Sublease: Formal creation of the sublease, specifying the premises being subleased
5. Term: Duration of the sublease, including commencement and expiry dates, and any renewal options
6. Rent and Other Payments: Rent amount, payment schedule, security deposit, utilities, and other charges
7. Use of Premises: Permitted use of the premises and any restrictions
8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements
9. Sublessee Obligations: Key obligations including compliance with master lease terms, insurance requirements, and general conduct
10. Sublessor Obligations: Responsibilities of the sublessor, including maintaining the master lease and providing quiet enjoyment
11. Insurance and Liability: Insurance requirements and allocation of risks
12. Default and Remedies: Events of default and available remedies for both parties
13. Termination: Grounds for termination and the process involved
14. Governing Law and Jurisdiction: Specification of Pakistani law and relevant jurisdiction for disputes
1. Fit-out Works: Include when the sublessee is permitted to carry out improvements or modifications to the premises
2. Assignment and Further Subletting: Include when there's a possibility of further assignment or subletting
3. Force Majeure: Include when parties want specific provisions for unforeseen circumstances
4. Environmental Matters: Include for industrial or commercial properties where environmental compliance is crucial
5. Signage Rights: Include when sublessee requires specific rights to display signage
6. Parking: Include when parking spaces are part of the sublease
7. Service Charges: Include for commercial properties with shared facilities and services
8. Break Clause: Include when early termination options are desired
1. Schedule 1 - Premises Plan: Detailed plan or drawing of the subleased premises
2. Schedule 2 - Master Lease: Copy or relevant excerpts of the master lease
3. Schedule 3 - Rent Schedule: Detailed breakdown of rent payments, escalations, and due dates
4. Schedule 4 - Inventory: List of fixtures, fittings, and equipment included in the sublease
5. Schedule 5 - Condition Report: Documentation of the premises condition at commencement
6. Schedule 6 - House Rules: Building rules and regulations applicable to the premises
7. Appendix A - Required Approvals: Copies of landlord consent and other necessary approvals
8. Appendix B - Insurance Requirements: Detailed insurance specifications and requirements
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