A sublease agreement is an agreement between an original leasee in which someone else takes over his obligations under the lease. Such agreements are common in real estate when an individual is renting an apartment. In some circumstances, there are limitations on whether a sublease agreement is permitted in the original lease.
A lease is an enforceable legal contract that governs the relationship between a landlord and tenant. It generally specifies the amount of rent the leasee must pay and the other terms of the lease, such as prohibited behavior. It also specifies the length of time for which the lease is valid; if the tenant attempts to break the lease early, he could be subject to monetary penalties equal to the amount of loss caused to the landlord as a result of the breach of the lease agreement.
When an individual needs to leave an apartment or other leased property early, he may wish to find a tenant to take over his lease. This can help him avoid the penalties associated with leaving the lease early. When he finds a tenant to take over his lease, he often must obtain approval from the original landlord. Some original leases prohibit the practice of subleasing to protect the landlord from having a tenant move in that he didn’t personally approve of.
In situations in which a sublease agreement is permitted, the agreement is generally between the original leasee and the new tenant. In other words, a new lease to the rental is not created between the landlord and the new tenant, and the existing tenant remains responsible to the landlord if the subtenant breaches the agreement or doesn’t pay the money owed. The new tenant will be entitled only to the rights of the existing tenant from whom he is subleasing, and the term of his lease will expire when the original lease expires; the sublease contract must specify all terms that apply.
A sublease agreement may have to be approved by the landlord who owns the real estate, although the legal contract is between the new and old tenant. The person who sublets his apartment can thus enforce the legal terms of the sublease agreement in court, suing the individual who violated the contract they had, but the original landlord would be relegated only to suing the original tenant since the landlord is not a party to the new agreement.