A sublease for a commercial premises (such as an office space or storage unit) may be known as a 'Commercial Sublease Agreement' or a 'Deed of Sublease'. A written sublease is essential if you’re:
In a sublease, a tenant who is currently leasing commercial property (known as the ‘sub-landlord’) leases all or a portion of its property to a new tenant (known as the sub-tenant), usually for the remainder of the term of the head lease (being the lease between the sub landlord/tenant and the head landlord). The original tenant becomes a quasi-landlord and receives rent from the subtenant. The original tenant remains responsible for payment of all rent, outgoings and complying with other obligations under its lease with the landlord. If the sub-tenant fails to pay its rent, the sub-landlord still has to pay the head landlord and recover its costs from the sub-tenant.
Save time, money and stress using an On Your Terms Sublease to get your specific arrangement clearly documented and enforceable in New Zealand.
A sublease is different to a licence because a sublease gives the tenant exclusive possession of the leased area (as opposed to under a licence, the tenant is merely given the right to use the area). A sublease gives rise to specific legal rights and is typically for longer than a licence (a licence can usually be cancelled on one months’ notice).
Any business owner (or its agent) subleasing (or receiving a sublease of) commercial premises.
NZ lawyers have designed this Sublease for NZ businesses. It is simple, short, easy to understand, without unnecessary legalese and fair to both sides, to reduce negotiation time and keep the relationship positive.
In the document, the sub-landlord (tenant of the premises) leases the ‘subleased premises’ to the subtenant. The key terms of the sublease are clearly stated, such as duration (the sublease is designed for one term), expiry date, rent, rent review dates (and method), outgoings, and permitted use of the subleased premises. The sub-tenant agrees to comply with the head lease (a copy of which needs to be given to the subtenant before signing the sublease) and pay all costs or liability of the sub-landlord if it doesn’t. There are optional provisions for a guarantee (if the sub-tenant is a company) and a bank guarantee.
If you are the sub-landlord, you must check your head lease to see if head landlord consent is required – most leases will require approval and there may be conditions or criteria to meet to get that approval.
Approximately 10 -15 minutes – whenever and wherever you want! During the Q&A you can save your progress to come back later, or repeat the Q&A to change an answer or produce a new version of a document.
On Your Terms has teamed up with Luminate Legal to offer its customers the option of obtaining legal advice from a lawyer to provide extra assurance and peace of mind. If you would like to ask a lawyer some quick questions about your document (or your responses to the Q&A), or have your document reviewed/edited by a lawyer, click here to view and select Luminate Legal's packages and fixed-fee pricing exclusively for On Your Terms customers.
The Sublease is ready to sign as soon as you have downloaded it. All parties must sign it to ensure it’s legally enforceable. If you need help with how to sign the Sublease, read our helpful blog: Who can sign legal documents in New Zealand?
Committing to a sublease can be a significant financial and business decision. It's crucial that the sub-landlord, sub-tenant and guarantor (if there is one) read and understand the Sublease and their rights and obligations and get legal advice if needed.
If you’re unsure whether this agreement is what you need, reach out to us at hello@onyourterms.co.nz – we’re happy to help!
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Disclaimer: On Your Terms was created to provide fast, easy and affordable access to legal information and documentation. We are not a law firm and do not provide legal advice. The information and documents we provide are of a general nature, designed for common situations, and may not be suitable for your needs or circumstances. If you need legal advice, we have a network of specialist law firm partners able to help you here.