The Sub Lease Agreement is essential in situations where an existing tenant wishes to transfer their leasing rights to another party while maintaining their obligations under the original lease. This document is commonly used in South Africa for both residential and commercial properties, requiring careful consideration of the Rental Housing Act, Consumer Protection Act, and other relevant legislation. The agreement must detail specific terms including property description, rental amounts, duration, maintenance responsibilities, and usage restrictions. It's crucial that the Sub Lease Agreement aligns with the head lease terms and typically requires the head landlord's consent. The document serves to protect all parties' interests while ensuring legal compliance and clear communication of rights and obligations under South African law.
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1. Parties: Identification of the head tenant (sub-lessor) and sub-tenant (sub-lessee), including full legal names, identification numbers, and contact details
2. Background: Context of the agreement, including reference to the main lease agreement and confirmation of the head landlord's consent where applicable
3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Head Lease', 'Term', and other relevant terms
4. Grant of Sub-Lease: Formal statement of the sub-lease grant, specifying the portion of the property being sub-let
5. Duration and Term: Period of the sub-lease, including commencement and termination dates, ensuring it doesn't exceed the head lease term
6. Rental and Payment Terms: Rental amount, payment dates, method of payment, and annual escalation rates
7. Deposit: Details of security deposit amount, terms of holding, and conditions for refund
8. Use of Property: Permitted use of the property and any restrictions, consistent with head lease terms
9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements
10. Utilities and Services: Responsibility for payment of utilities, municipal services, and other charges
11. Insurance: Insurance requirements for both parties
12. Sub-Tenant's Obligations: Comprehensive list of sub-tenant's responsibilities and commitments
13. Sub-Lessor's Obligations: Comprehensive list of sub-lessor's responsibilities and commitments
14. Breach and Termination: Consequences of breach and circumstances under which the agreement may be terminated
15. Notices and Domicilia: Contact details and addresses for formal notices
16. General Provisions: Standard legal clauses including whole agreement, variation, and governing law
1. Subletting and Assignment: Section prohibiting further subletting or assignment, used when specifically needed to restrict such activities
2. Shared Facilities: Rules and arrangements for shared facilities, used when the property includes common areas
3. Parking: Specific arrangements for parking facilities, included when parking is part of the sub-lease
4. Pet Clause: Rules regarding keeping pets on the property, included when pets are allowed or specifically prohibited
5. Break Clause: Provisions for early termination, included when parties agree to allow early termination options
6. Operating Hours: For commercial properties, specifying permitted operating hours and restrictions
7. Property Management Rules: Reference to body corporate or complex rules, included for properties in managed developments
1. Schedule A - Property Description: Detailed description of the property including floor plans and photographs
2. Schedule B - Inventory List: Detailed list of furniture, appliances, and fittings included in the sub-lease
3. Schedule C - Head Lease Agreement: Copy or relevant excerpts of the head lease agreement
4. Schedule D - Condition Report: Detailed report on the condition of the property at commencement of sub-lease
5. Schedule E - House Rules: Building or complex rules and regulations where applicable
6. Appendix 1 - Landlord's Consent: Written consent from the head landlord for the sub-lease
7. Appendix 2 - Utility Agreements: Copies of relevant utility agreements or arrangements
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