The Sublease Agreement is a crucial document used in Hong Kong when a tenant wishes to transfer their leasehold rights to another party while maintaining their obligations under the original lease. This document is essential in both commercial and residential contexts, particularly in Hong Kong's dynamic property market where subleasing is common practice. The agreement must comply with Hong Kong's property laws, including the Landlord and Tenant (Consolidation) Ordinance, and typically requires the head landlord's consent. It contains detailed provisions covering rent, deposits, maintenance, permitted use, and other key terms while ensuring the sublessee's obligations align with the head lease requirements. The document is particularly relevant in situations involving business expansion, temporary relocations, or space optimization strategies within Hong Kong's competitive real estate environment.
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1. Parties: Identifies the sublessor (current tenant) and sublessee (new tenant), including full legal names and addresses
2. Background: Establishes the context of the sublease, including reference to the head lease and confirmation of the sublessor's authority to sublease
3. Definitions: Defines key terms used throughout the agreement, including 'Premises', 'Head Lease', 'Term', and other relevant terms
4. Demise: Formal grant of the sublease, specifying the premises being subleased and the term of the sublease
5. Rent and Payment Terms: Details of rent amount, payment schedule, method of payment, and any rent review provisions
6. Deposit: Specifies the security deposit amount, payment terms, and conditions for return
7. Tenant Covenants: Sublessee's obligations including maintenance, permitted use, compliance with head lease terms, and building rules
8. Landlord Covenants: Sublessor's obligations including quiet enjoyment and maintenance responsibilities
9. Insurance: Insurance requirements for both parties
10. Assignment and Further Subletting: Restrictions on assignment and further subletting of the premises
11. Termination: Circumstances under which the sublease can be terminated and the process for termination
12. Execution: Signature blocks and execution formalities
1. Utilities and Services: Details of responsibility for utilities and service charges when these are not included in the rent
2. Alterations and Improvements: Include when the sublessee is permitted to make changes to the premises
3. Break Clause: Include when either party has the option to terminate the lease early under specific conditions
4. Rent Review: Include for longer subleases where rent adjustments may be needed
5. Government Rent and Rates: Include when there's specific allocation of responsibility for these charges
6. Air Conditioning: Include for commercial premises where specific hours of air conditioning service need to be defined
7. Signage Rights: Include for commercial premises where the sublessee needs rights to display signage
8. Car Parking: Include when car parking spaces are part of the sublease
1. Schedule 1 - The Premises: Detailed description of the subleased premises including floor plans and measurements
2. Schedule 2 - Head Lease: Copy or relevant excerpts of the head lease
3. Schedule 3 - Inventory: List of fixtures, fittings, and furniture included in the sublease
4. Schedule 4 - Building Rules: Copy of the building management rules and regulations
5. Schedule 5 - Condition Report: Detailed report on the condition of the premises at the start of the sublease
6. Appendix A - Plans: Floor plans and location maps of the premises
7. Appendix B - Utilities Reading: Initial meter readings for utilities at handover
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