Unlocking eSignature Legality for Sublease Agreements in Australia

How to eSign a document: eSignature licitness for Sublease Agreement in Australia

[Music] oftentimes whether for financial reasons or to make better use of a space a tenant who is under a lease for commercial property can re-rent a certain area or all of the space to a sub-tenant by using a commercial sublease agreement however sub-leasing goes beyond simply drafting a document and assuming a role in the tenant sub-tenant relationship that's why in this video we'll discuss noteworthy measures to take when subleasing commercial property and well summarize how to create an effective legally binding agreement make sure that you watch to the end of this video for an official template what is a commercial sublease agreement a commercial sublease agreement is a document used by an individual or business entity attempting to sublet part or all of the commercial space that they currently occupy under a lease with its owner the reasoning behind the original tenant seeking a sublease varies from case to case for instance if the property contains office space the current tenant may wish to sublet designated offices to a sublesser who will in turn not only pay rent but share resources and utilities with the initial tenant this of course drives down the price of rent for both the tenant and the newly integrated sublesser again that's only one example and the tenant may have vastly different reasons to sublet their rental whatever they may be completing a written sublease agreement stipulating the nature of the relationship is perhaps the most crucial step in setting up the arrangement do note that no commercial property shall be subleased without the express written consent of the landlord or property owner the original or master lease should indicate whether subleasing is allowed if it doesn't mention or explicitly prohibits the arrangement the tenant must then seek written approval from the landlord once approval is sought and obtained the tenant can begin creating the sublease agreement the document should be as detailed as possible in order to avoid any discrepancies and fully govern the sub-tenancy among all relevant information on the agreement the following standard elements should be included name of both parties the tenant and the sub-tenant the date of the agreement location and description of the property duration of the sublease term total monthly rent amount and its due date security deposits late fees and applicable penalties grounds for termination responsibilities of both parties and signatures of both parties that information should cover the basics of the agreement but the more complex sublet understanding the more comprehensive the contract should be we have included a link below for an official fillable template that covers just about everything within an expansive 10 pages so be sure to give it a view after watching this video and finally it's important to highlight one of the most overlooked but vital aspects of subleasing the tenant's responsibility prior to executing a sublease contract the tenant will be responsible for vetting potential sublessers which includes performing background checks to inquire about criminal and credit history as well as ensuring the sublesser is able to assume rental costs one common practice involves requesting the prospects tax returns both individual and corporate filings doing so further reveals how that individual operates financially in a personal and or business capacity and the tenant's obligations only increase upon the sublease's effective date this is because if the sub-tenant fails to pay their rent or causes damages to the premises the original tenant is ultimately responsible sure the tenant can seek remedy for the sub-tenant if they falter but the landlord will hold the original tenant liable nonetheless since the landlord and the sub-tenant aren't technically under direct contract any individual or entity looking to sublease their commercial rental should fully comprehend the terms of the arrangement and how their roles affect the master lease with the landlord thanks for tuning in to our video we're eforms dot com the largest database of legal documents we have compiled a vast library of both fillable templates and blank printable forms for our users to utilize among many of them of course is the commercial sublease agreement which is linked on screen and down in the description below [Music]