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Commercial Sublease Agreement for Philippines

Commercial Sublease Agreement Template for Philippines

A Commercial Sublease Agreement under Philippine law is a legally binding document that establishes the terms and conditions under which a primary tenant (sublandlord) leases all or part of their rented property to another party (subtenant). This agreement must comply with the Civil Code of the Philippines and relevant local property laws, while ensuring alignment with the original master lease terms. The document covers essential elements including property details, rental terms, duration, permitted use, maintenance responsibilities, and specific obligations of all parties involved, with particular attention to Philippine legal requirements for commercial property transactions.

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What is a Commercial Sublease Agreement?

The Commercial Sublease Agreement is essential when a primary tenant wishes to transfer their leasing rights partially or wholly to another party while maintaining their relationship with the original landlord. This document is commonly used in the Philippines when businesses need to optimize their leased space or adjust their property commitments. It must carefully balance the rights and obligations of all parties while ensuring compliance with Philippine property laws, particularly the Civil Code and local commercial regulations. The agreement typically includes detailed provisions about the property, rental terms, permitted uses, maintenance responsibilities, and the relationship between all parties involved. Special attention must be paid to ensure the sublease terms don't conflict with the master lease and that all necessary approvals from the original landlord are obtained as required under Philippine law.

What sections should be included in a Commercial Sublease Agreement?

1. Parties: Identifies all parties involved: Original Landlord, Tenant/Sublandlord, and Subtenant, including their complete legal names and addresses

2. Background: Explains the context of the sublease, including reference to the master lease and the authority to sublease

3. Definitions: Defines key terms used throughout the agreement, including Property, Term, Master Lease, etc.

4. Grant of Sublease: Specifies the property being subleased and the nature of the sublease grant

5. Term and Renewal: Details the duration of the sublease and any renewal options, ensuring it doesn't exceed the master lease term

6. Rent and Security Deposit: Specifies rent amount, payment terms, security deposit requirements, and any escalation clauses

7. Use of Premises: Defines permitted uses of the property and any restrictions

8. Maintenance and Repairs: Outlines responsibilities for property maintenance and repairs between parties

9. Utilities and Services: Specifies responsibility for utilities and services and payment arrangements

10. Insurance and Liability: Details required insurance coverage and liability obligations

11. Assignment and Further Subletting: States whether further assignment or subletting is permitted and under what conditions

12. Default and Remedies: Describes events of default and available remedies

13. Termination: Specifies conditions and procedures for termination

14. Governing Law: Confirms Philippine law governs the agreement and specifies jurisdiction

15. Notices: Details how formal notices should be given between parties

16. Entire Agreement: Standard clause confirming this document represents the complete agreement between parties

What sections are optional to include in a Commercial Sublease Agreement?

1. Fit-out Works: Include when subtenant will perform initial improvements or modifications to the space

2. Common Areas: Include when the sublease involves shared facilities or common areas

3. Operating Expenses: Include when there's a cost-sharing arrangement for building operations

4. Signage Rights: Include when subtenant has or requires specific signage rights

5. Parking: Include when parking spaces are part of the sublease

6. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

7. Environmental Compliance: Include for properties where environmental concerns are significant

8. Option to Purchase: Include if subtenant is given any option to purchase the property

What schedules should be included in a Commercial Sublease Agreement?

1. Schedule A - Property Description: Detailed description of the subleased premises, including floor plans and measurements

2. Schedule B - Master Lease: Copy or relevant excerpts of the master lease agreement

3. Schedule C - Rent Schedule: Detailed breakdown of rent payments, including any escalations

4. Schedule D - Building Rules and Regulations: Specific rules and regulations governing the use of the property

5. Schedule E - Fit-out Specifications: Technical specifications for any approved modifications or improvements

6. Schedule F - Condition Report: Documentation of the property's condition at the start of the sublease

7. Schedule G - Service Charges: Breakdown of service charges and operating expenses if applicable

8. Appendix 1 - Required Permits and Licenses: List of necessary permits and licenses for property use

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
































Clauses








































Relevant Industries

Real Estate

Retail

Office Space

Industrial

Hospitality

Healthcare

Technology

Manufacturing

Professional Services

Food and Beverage

Education

Logistics

Warehousing

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Risk Management

Business Development

Property Management

Procurement

Administrative Services

Relevant Roles

Real Estate Manager

Facilities Manager

Property Manager

Business Operations Director

Chief Financial Officer

Legal Counsel

Commercial Director

Operations Manager

Real Estate Broker

Lease Administrator

Asset Manager

Property Development Manager

Business Development Manager

Contract Manager

Risk Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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