Deed of Sub Lease to give the leased property on sub lease to Third Party.

Format of Lease Deed for sub lease of Leased property to another third party tenant.

A sublease is the renting of property by a tenant to a third party for a portion of the tenant's existing lease contract. Even if a tenant subleases a property, the original tenant is still liable for the obligations stated in the lease agreement, such as the payment of rent each month. Sub leasing with the consent of the Landlord is legal in India. If the agreement allows the tenant to sublease it, the tenant can sub lease portion of property to third party. When a tenant whose name is on the lease rents a room, a portion of the property, or all of the property to another, it is referred to as subleasing (or subletting). The subtenant must pay rent and comply with the lease terms, but the principal tenant remains ultimately responsible for the lease.

Sample Format of Sub Lease Deed is given below.

 

SUB LEASE AGREEMENT

This Deed of sub-lease is made at _____________ this ____ day of ____ _____

Between

Mr. _____________ son of _____________ resident of _____________ hereinafter referred to as the Sub Lessor of the One Part

and

Mr. _____________ Son of _____________resident of _____________ hereinafter referred to as the Sub Lessee of the Other Part ;

WHEREAS -

(1) By a Deed of Lease dated _____________ made between Mr. _____________ therein and hereinafter referred to as 'the Lessor' of the One Part and the Sub Lessor therein referred to as the 'Lessee' of the Other Part and registered at the office of the Sub Registrar at _____________ under S.No. _____________ of Book No. _____________ the Lessor demised unto the Sub Lessor as Lessee the land and premises described in the Schedule thereunder written (being the same as described in the first schedule hereunder written) for a term of ______ years at the yearly rent of Rs. ______ and on and subject to the covenants, terms and conditions therein mentioned.

(2) The Lease is still valid and subsisting.

(3) The Sub Lessee has requested the Sub Lessor to grant to him a sublease of a portion of the said demised premises and which portion is delineated on the plan hereto annexed by red coloured boundary line and is more particularly described in the second schedule hereunder written and which the Sub Lessor has agreed to grant in the manner following.

NOW THIS DEED WITNESSETH that pursuant to the said agreement and in consideration of the rent hereby reserved and of the terms covenants and conditions hereinafter provided the Sub Lessor doth hereby sub demise unto the Sub Lessee the said portion of land described in the second Schedule hereunder written and delineated on the plan thereof hereto annexed and thereon shown by boundary line coloured red (and forming part of the land described in the First Schedule hereunder written) hereinafter referred to as "the sub demised land" To Hold the same unto and to the use of the Sub- Lessee for all the residue of the unexpired term granted by the said Deed of Lease, less ______ months but subject to the earlier determination thereof as hereinafter provided and yielding and paying therefore during the said term the monthly ground rent of Rs. __________ free and clear of all deductions and strictly in advance on or before the _______ day of each month commencing from the ________ day of the month of _________ next and thereafter on or before the __________ day of each and every succeeding month during the continuance of the lease.

2. The Sub Lessee, with a view to bind himself and his heirs, executors or administrators covenants with the Sub Lessor as follows :-

(a) To observe and perform all the terms, covenants and conditions contained in the said Deed of Lease to the extent and so far as they are applicable to the sub demised land as if they were incorporated in these presents and not to commit breach of or do any act contrary to any of the said terms, covenants and conditions.

(b) To pay land revenue and other taxes payable in respect of the sub demised land in the same proportion which the area of the sub demised land bears to the total area of the land described in the First Schedule hereunder written.

(c) To pay the monthly rent as aforesaid regularly to the Sub Lessor.

(d) To pay all Municipal and other taxes, rates, cess and other levies on the building and structures if any constructed thereon, to the Govt. or any local authority.

(e) Not to cause nuisance or annoyance to the adjoining owners and occupants.

(f) Not to assign, mortgage or sublet or otherwise part with possession thereof in favour of any other person, without the prior written consent of the Sub Lessor.

(g) To indemnify and keep indemnified the Sub Lessor against any loss, costs, charges and expenses that he may suffer or incur on account of breach of any law, rules and regulations of the Govt. or any local authority, or breach of any term or covenant of the said Deed of Lease or of these presents.

(h) To use the sub demised land for the purposes of -

3. The Sub Lessor doth hereby covenant with the Sub Lessee that -

(a) The Sub Lessor has in himself good right, and full authority to sub demise the said portion of the land described in the Second Schedule hereunder written in the manner aforesaid.

(b) On the Sub Lessee paying the monthly rent regularly on due dates and observing and performing the covenants, term and conditions herein contained and those contained in the said Deed of Lease and on the part of the Sub Lessee to be observed and performed he shall peacefully and quietly hold, possess and enjoy the Sub demised land together with the buildings and structure if any standing thereon during the term hereby created, without any eviction, interruption, disturbance, claim or demand whatsoever by the Sub Lessor or any person or persons lawfully or equitably claiming by, from or in trust for him.

4. And it is hereby agreed and declared as an express term of this lease that if the Sub Lessee commits default in payment of more than _____ monthly installments of rent or commits breach of any covenant, term or condition contained in these presents or in the said Deed of Lease, or if the Sub Lessee is adjudged insolvent, then and any of such cases or events, the Sub Lessor shall be entitled thereunder to enter upon the sub-demised land or any part thereof in the name of the whole and thereupon this sub-demise shall determine without prejudice to any other right conferred on the Sub Lessor by these presents or in law Provided that, if within the period given in the notice to be served upon the Sub Lessee for payment of arrears of rent or remedying to the satisfaction of the Sub Lessor the breach of any term, covenant or conditions of these presents or the said Deed of Lease, the rent is paid or the breach is remedied, then the notice to determine the Lease shall be deemed to have been withdrawn.

5. On the expiration of the said period of the Sub Lease or earlier determination thereof as aforesaid, and within a period of _____ months from the date of such termination or determination the Sub Lessee shall remove all the buildings and structures if any constructed thereon at his own costs failing which the same shall belong to the Sub Lessor and the Sub Lessee shall be deemed to have waived or given up his right thereto.

IN WITNESS WHEREOF the Sub Lessor and Sub Lessee have put their hands the day and year first hereinabove written.

THE FIRST SCHEDULE ABOVE

THE SECOND SCHEDULE ABOVE
 

WITNESSES

Sub Lessor _____________

1.

Sub Lessee ____________

2.

   

Relevant Sections of Transfer of Properties Act 1882

Section 107 "Leases how made"

107. A lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument.
All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession.

Where a lease of immovable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee:

Provided that the State Government may, from time to time, by notification in the Official Gazette, direct that leases of immovable property, other than leases from year to year, or for any term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or by oral agreement without delivery of possession.

 

Section 108 "Rights and liabilities of lessor and lessee"

108. In the absence of a contract or local usage to the contrary, the lessor and the lessee of immovable property, as against one another, respectively, possess the rights and are subject to the liabilities mentioned in the rules next following or such of them as are applicable to the property leased :-


A. Rights and liabilities of the Lessor
(a) the lessor is bound to disclose to the lessee any material defect in the property, with reference to its intended use, of which the former is and the latter is not aware, and which the latter could not with ordinary care discover;

(b) the lessor is bound, on the lessee's request to put him in possession of the property;

(c) the lessor shall be deemed to contract with the lessee that, if the latter pays the rent reserved by the lease and performs the contract binding on the lessee, he may hold the property during the time limited by the lease without interruption.

The benefit of such contract shall be annexed to and go with the lessee's interest as such, and may be enforced by every person in whom that interest is for the whole or any part thereof from time to time vested.

B. Rights and liabilities of the lessee
(d) if during the continuance of the lease any accession is made to the property, such accession (subject to the law relating to alluvion for the time being in force) shall be deemed to be comprised in the lease;

(e) if by fire, tempest or flood, or violence of any army or of a mob, or other irresistible force, any material part of the property be wholly destroyed or rendered substantially and permanently unfit for the purposes for which it was let, the lease shall, at the option of the lessee, be void :

Provided that, if the injury be occasioned by the wrongful act or default of the lessee, he shall not be entitled to avail himself to the benefit of this provision;

(f) if the lessor neglects to make, within a reasonable time after notice, any repairs which he is bound to make to the property, the lessee may make the same himself, and deduct the expense of such repairs with interest from the rent, or otherwise recover it from the lessor;

(g) if the lessor neglects to make any payment which he is bound to make, and which if not made by him, is recoverable from the lessee or against the property, the lessee may make such payment himself, and deduct it with interest from the rent, or otherwise recover it from the lessor;

(h) the lessee may even after the determination of the lease remove, at any time whilst he is in possession of the property leased but not afterwards, all things which he has attached to the earth : provided he leaves the property in the state in which he received it ;

(i) when a lease of uncertain duration determines by any means except the fault of the lessee, he or his legal representative is entitled to all the crops planted or sown by the lessee and growing upon the property when the lease determines, and to free ingress and egress to gather and carry them;

(j) the lessee may transfer absolutely or by way of mortgage or sub-lease the whole or any part of his interest in the property, and any transferee of such interest or part may again transfer it. The lessee shall not, by reason only of such transfer, cease to be subject to any of the liabilities attaching to the lease;

nothing in this clause shall be deemed to authorize a tenant having an un-transferable right of occupancy, the farmer of an estate in respect of which default has been made in paying revenue, or the lessee of an estate under the management of a Court of Wards, to assign his interest as such tenant, farmer or lessee;

(k) the lessee is bound to disclose to the lessor any fact as to the nature or extent of the interest which the lessee is about to take, of which the lessee is, and the lessor is not, aware, and which materially increases the value of such interest;

(l) the lessee is bound to pay or tender, at the proper time and place, the premium or rent to the lessor or his agent in this behalf;

(m) the lessee is bound to keep, and on the termination of the lease to restore, the property in as good condition as it was in at the time when he was put in possession, subject only to the changes caused by reasonable wear and tear or irresistible force, and to allow the lessor and his agents, at all reasonable times during the term, to enter upon the property and inspect the condition thereof and give or leave notice of any defect in such condition; and, when such defect has been caused by any act of default on the part of the lessee, his servants or agents, he is bound to make it good within three months after such notice has been given or left;

(n) if the lessee becomes aware of any proceeding to recover the property or any part thereof, or of any encroachment made upon, or any interference with, the lessor's rights concerning such property, he is bound to give, with reasonable diligence, notice thereof to the lessor;

(o) the lessee may use the property and its products (if any) as a person of ordinary prudence would use them if they were his own; but he must not use, or permit another to use, the property for a purpose other than that for which it was leased, or fell or sell timber, pull down or damage buildings belonging to the lessor or work mines or quarries not open when the lease was granted, or commit any other act which is destructive or permanently injurious thereto;

(p) he must not, without the lessor's consent, erect on the property any permanent structure, except for agricultural purposes;

(q) on the determination of the lease, the lessee is bound to put the lessor into possession of the property.