Sub Lease Template for India

The Sub Lease agreement is essential in situations where an existing tenant wishes to lease out all or part of their rented property to another party in India. This arrangement is common in commercial and residential contexts, particularly when businesses need to optimize space usage or individuals need to temporarily relocate. The document must carefully balance the rights and obligations of the head tenant and sub-tenant while ensuring compliance with the master lease and Indian property laws. The agreement typically includes detailed provisions for rent, security deposits, maintenance responsibilities, and use restrictions. It must comply with the Transfer of Property Act, 1882, state-specific rent control laws, and registration requirements if the term exceeds one year. A well-drafted Sub Lease protects all parties' interests and clearly defines the relationship between the master lease and the sub-lease arrangement.

1. Parties: Details of the head-tenant (sub-lessor) and sub-tenant (sub-lessee), including full legal names, addresses, and contact information

2. Background: Context of the sub-lease, including reference to the master lease and confirmation of the head-tenant's authority to sub-lease

3. Definitions: Key terms used throughout the agreement including Property, Term, Rent, Security Deposit, Master Lease, etc.

4. Demise: Formal grant of the sub-lease, describing the property being sub-let and any included facilities or amenities

5. Term and Possession: Duration of the sub-lease, commencement date, and conditions for possession

6. Rent and Payment Terms: Amount of rent, payment schedule, method of payment, and provisions for rent review

7. Security Deposit: Amount, payment terms, conditions for refund, and permitted deductions

8. Permitted Use: Specified purposes for which the property may be used

9. Maintenance and Repairs: Responsibilities of sub-lessor and sub-lessee for maintenance, repairs, and improvements

10. Utilities and Outgoings: Responsibility for payment of utilities, taxes, and other charges

11. Insurance: Insurance requirements for both parties

12. Compliance with Master Lease: Sub-lessee's obligations to comply with master lease terms

13. Assignment and Further Sub-letting: Restrictions on assignment or further sub-letting

14. Termination: Grounds for termination, notice requirements, and consequences

15. Governing Law: Specification of Indian law as governing law and jurisdiction