Subcontract Lease Agreement Template for Philippines

The Subcontract Lease Agreement is a crucial document used when a primary tenant wishes to transfer their leasehold rights partially or wholly to another party while maintaining their original lease obligations in the Philippines. This agreement type is commonly utilized in commercial and industrial settings where businesses need to optimize their space usage or reduce rental costs. The document must carefully balance the interests of all parties while ensuring compliance with Philippine property laws, including the Civil Code, Rent Control Act, and local government regulations. It typically includes detailed provisions about the subleased premises, rental terms, maintenance responsibilities, and the relationship between all parties involved. The agreement must also address specific requirements under Philippine law regarding registration, notarization, and obtaining necessary permits, particularly for commercial properties.

1. Parties: Identifies all parties to the agreement: the original lessor, the lessee/sublessor, and the sublessee, including their complete legal names and addresses

2. Background: Explains the context of the sublease, including reference to the original lease agreement and the sublessor's right to sublease

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Grant of Sublease: Explicitly states the sublessor's grant of sublease rights to the sublessee, including the specific portion of the property being subleased

5. Term and Renewal: Specifies the duration of the sublease and any renewal options, ensuring it doesn't exceed the main lease term

6. Rent and Payment Terms: Details the rent amount, payment schedule, security deposit, and other financial obligations

7. Use of Premises: Specifies permitted and prohibited uses of the property, consistent with the main lease

8. Maintenance and Repairs: Outlines responsibilities for property maintenance, repairs, and improvements

9. Utilities and Services: Specifies responsibility for utility connections, payments, and related services

10. Insurance and Liability: Details required insurance coverage and allocation of risks

11. Default and Remedies: Specifies events of default and available remedies for all parties

12. Termination: Outlines conditions and procedures for early termination

13. Governing Law: Confirms Philippine law as governing law and jurisdiction for disputes

14. Notices: Specifies how and where formal notices must be delivered to all parties

15. General Provisions: Including severability, entire agreement, and amendment procedures