The Commercial Sublease Agreement is essential in Singapore's dynamic commercial property market where businesses often need flexibility in their lease arrangements. This document is used when a tenant wishes to transfer partial or full rights of their leased premises to another party while maintaining their obligations under the original lease. The agreement must comply with Singapore's robust legal framework and typically requires the head landlord's consent. It covers crucial elements such as rental terms, security deposits, permitted use, maintenance obligations, and insurance requirements, while ensuring alignment with the head lease conditions. This agreement is particularly relevant in situations where businesses are downsizing, expanding, or restructuring their space requirements.
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1. Parties: Identification of head tenant (sublessor) and subtenant (sublessee), including full legal names, registration numbers, and registered addresses
2. Background: Context of sublease, including reference to head lease details, property ownership, and authority to sublease
3. Definitions: Key terms used throughout the agreement including 'Premises', 'Term', 'Rent', 'Security Deposit', etc.
4. Demised Premises: Detailed description of subleased property including location, floor area, and included facilities
5. Term and Rent: Duration of sublease, rental amount, payment schedule, and rent review mechanisms
6. Permitted Use: Specific allowed uses of the premises in compliance with zoning laws and head lease restrictions
7. Obligations of Parties: Comprehensive rights and responsibilities of sublessor and sublessee including maintenance, repairs, and alterations
8. Insurance: Required insurance coverage including public liability, property damage, and other mandatory insurance
9. Termination: Conditions and procedures for ending the sublease, including notice periods and consequences of default
1. Option to Renew: Terms for extending the sublease, including notice period and rent review for renewal term
2. Break Clause: Early termination provisions including conditions and notice requirements
3. Fitting Out Works: Provisions for premises modifications including approval process and reinstatement obligations
4. Service Charge: Additional maintenance fees and building service charges applicable to managed properties
1. Schedule 1 - Floor Plan: Detailed plan of subleased premises with measurements and boundaries
2. Schedule 2 - Inventory List: Comprehensive list of fixtures, fittings, and equipment included in the sublease
3. Schedule 3 - Head Lease: Copy of original lease agreement between head landlord and sublessor
4. Schedule 4 - Landlord's Consent: Written approval from head landlord authorizing the sublease
5. Schedule 5 - House Rules: Building regulations, guidelines, and operational procedures
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