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Subleases

The comprehensive guidance on subleases explores the complex legal framework governing tenant subletting arrangements under Australian property law. Practitioners must understand the nuanced relationships between landlords, tenants, and subtenants, and carefully navigate statutory and contractual obligations to mitigate risks.

Topics Covered

  • What is a sublease?
  • Difference between a sublease and an assignment
  • Landlord's consent to grant a sublease
  • Term requirements for subleases
  • Effect of lease forfeiture on subleases
  • Impact of lease surrender on subleases

Essential Insights

  • Recognise why a sublease must always expire before the head lease to avoid unintended assignment consequences.
  • Understand landlord consent nuances, including implied prohibitions and procedural pitfalls in lease clauses.
  • Evaluate the strategic drafting of subleases to incorporate or override head lease terms without breaching covenants.
  • Anticipate legal complexities arising from lease forfeiture or surrender and their effect on subtenant protections.
  • Explore the statutory variations across jurisdictions impacting sublease enforceability and remedies.

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