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Commercial Sublease Agreement

Commercial Sublease Agreement Template for Nigeria

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Key Requirements PROMPT example:

Commercial Sublease Agreement

"I need a Commercial Sublease Agreement for a retail space in Lagos, Nigeria, with a 3-year term starting March 1, 2025, including specific provisions for signage rights and customer parking allocation."

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Document background
The Commercial Sublease Agreement is a vital legal instrument used in Nigerian business operations when an existing tenant wishes to transfer partial or full rights of their leased premises to another party while maintaining their original lease agreement with the landlord. This document is essential in situations where businesses need to optimize their space usage, reduce costs, or accommodate changing space requirements. The agreement must comply with Nigerian property laws, particularly the Land Use Act 1978, and typically requires the master landlord's consent. It includes detailed provisions for rent, maintenance, insurance, and other obligations, while ensuring that the subtenant's use aligns with both the master lease terms and local regulations. The document is particularly relevant in urban commercial centers like Lagos, Abuja, and Port Harcourt, where commercial property subleasing is common practice.
Suggested Sections

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

2. Background: Recitals explaining the context of the sublease, including reference to the master lease and the Sublandlord's authority to sublease

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

4. Demise: The formal granting of the sublease, specifying the premises being subleased

5. Term and Renewal: Duration of the sublease, commencement date, and any renewal options

6. Rent and Other Payments: Details of rent amount, payment schedule, security deposit, and other financial obligations

7. Use of Premises: Permitted use of the premises and any restrictions

8. Maintenance and Repairs: Responsibilities for maintaining and repairing the premises

9. Alterations and Improvements: Rules regarding modifications to the premises

10. Insurance and Liability: Required insurance coverage and allocation of risks

11. Assignment and Further Subletting: Restrictions on transfer of the sublease interest

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

13. Default and Remedies: Events of default and available remedies

14. Termination: Conditions and procedures for ending the sublease

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

Optional Sections

1. Utilities and Services: Details of responsibility for utilities when not included in rent

2. Signage Rights: Rules regarding exterior and interior signage when applicable

3. Parking: Allocation of parking spaces when parking is available

4. Common Areas: Rights and obligations regarding shared facilities when applicable

5. Environmental Matters: Special provisions for properties with environmental concerns

6. Security Arrangements: Special security requirements for high-security premises

7. Force Majeure: Provisions for unforeseen circumstances affecting performance

8. Option to Purchase: Right to purchase the property if agreed with master landlord

Suggested Schedules

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

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

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

4. Schedule 4 - Condition Report: Description of the premises condition at commencement of sublease

5. Schedule 5 - Fitting Out Specifications: Specifications for any permitted tenant improvements

6. Schedule 6 - Service Charges: Breakdown of service charges and operating expenses if applicable

7. Appendix A - Required Insurances: Detailed list of required insurance coverage

8. Appendix B - Rules and Regulations: Building rules and regulations applicable to the subtenant

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Clauses
Grant of Sublease
Term and Renewal
Rent and Payment
Security Deposit
Use of Premises
Utilities and Services
Maintenance and Repairs
Alterations and Improvements
Insurance
Assignment and Subletting
Default and Remedies
Indemnification
Access Rights
Compliance with Laws
Environmental Compliance
Force Majeure
Quiet Enjoyment
Surrender of Premises
Master Lease Compliance
Governing Law
Dispute Resolution
Notices
Registration and Stamping
Termination
Property Tax
Service Charges
Utilities
Common Areas
Signage Rights
Parking Rights
Security Arrangements
Representations and Warranties
Severability
Entire Agreement
Amendment
Waiver
Relevant Industries

Retail

Office Space

Industrial

Hospitality

Healthcare

Technology

Financial Services

Manufacturing

Logistics

Professional Services

Education

Entertainment

Food and Beverage

Warehousing

Telecommunications

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Administration

Property Management

Corporate Services

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Operations Director

Chief Financial Officer

Business Development Manager

Commercial Director

Compliance Officer

Contract Manager

Risk Manager

Estate Agent

Property Developer

Office Manager

Company Secretary

Industries
Land Use Act 1978: The fundamental law governing land ownership and administration in Nigeria. It vests all land in the state governors and outlines the system of land tenure, transfer, and registration.
Contract Law (Common Law of Contract): Governs the formation and enforcement of contracts in Nigeria, including commercial lease agreements and their validity.
Stamp Duties Act: Requires stamp duty to be paid on lease agreements and other instruments, including the proper stamping of commercial lease documents.
Nigerian Law of Property Act: Governs property rights, interests, and transactions in Nigeria, including lease agreements and property transfer regulations.
Recovery of Premises Act: Regulates the relationship between landlords and tenants, including procedures for recovery of premises and dispute resolution.
Registration of Titles Act: Governs the registration of property titles and interests, including lease agreements and subleases.
Rent Control and Recovery of Residential Premises Laws: State-specific laws that regulate rent and tenant-landlord relationships, which may affect commercial properties in some jurisdictions.
Environmental Laws and Regulations: Various environmental protection laws that may affect commercial property use and obligations of tenants and landlords.
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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