Sublease Contract Template for Malaysia

The Sublease Contract is a vital legal instrument in Malaysian property transactions, used when an existing tenant wishes to lease all or part of their rented property to another party. This arrangement must comply with Malaysian property law, particularly the National Land Code 1965 and the Contracts Act 1950. The document is essential for businesses and individuals seeking to optimize their leased space or manage property costs effectively. It includes crucial details about the property, rental terms, responsibilities, and the relationship between all parties involved. The sublease must align with the master lease terms and typically requires the landlord's consent. This document is particularly relevant in commercial settings where space optimization and flexibility are important, though it's also used in residential contexts. The contract must be properly stamped under Malaysian law to be legally enforceable.

1. Parties: Identification of the sublessor (original tenant) and sublessee, including full legal names, registration numbers for companies, and addresses

2. Background: Context of the sublease, including reference to the master lease and confirmation of authority to sublease

3. Definitions: Definitions of key terms used throughout the agreement

4. Demised Premises: Detailed description of the subleased property, including specific areas and any shared facilities

5. Term and Possession: Duration of the sublease, commencement date, and conditions for possession

6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences

7. Security Deposit: Amount of security deposit, terms of holding and return conditions

8. Permitted Use: Specified allowed uses of the premises and any restrictions

9. Maintenance and Repairs: Responsibilities of each party regarding maintenance, repairs, and improvements

10. Utilities and Outgoings: Responsibility for utility payments and other ongoing expenses

11. Insurance: Required insurance coverage and responsibilities of each party

12. Compliance with Master Lease: Sublessee's obligations to comply with master lease terms

13. Assignment and Further Subletting: Restrictions on assignment or further subletting of the premises

14. Termination: Conditions and procedures for early termination

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