Definition of "Sublease"
If you came here looking for the Sublease definition, chances are that you know what it means, but you need more information about it, with scenarios and facts to better grasp it. That’s why we’re here!
The obvious and stiff sublease definition is that of a lease agreement between the lessee of an original lease, and a new lessee. For example: John signs a lease for an apartment with its owner Brian that allows John to sublease it to another person if desired. John unexpectedly is offered a position in Europe and, whether out of fear of not liking it and deciding to get back or because his bilateral contract with Brian would require him to pay off a large early termination fee he is not willing to pay – John decides to sublease the apartment for the remaining term of the original lease to a friend called Regina.
The thing is: the sublease represents the agreement between John and Regina. Brian, the original lessor, is *not* a party to the sublease. Any dispute between owner Brian and lessee John typically cannot be passed on to lessee Regina, just like any dispute between Regina and John cannot be passed on to its owner Brian. Because of that confusion and lack of accountability, most renters frown upon and do not accept any subleases to their properties.
A sublease is not illegal. Actually; it’s not a matter of being legal or illegal – it’s up to whoever is the real estate owner to tell them how their home is to be used. However, because of shared responsibilities, there are some cases where, even if the homeowner is fine with a sublease, he or she might not go forward with the idea because the Homeowner’s Association (HOA) does not permit subleasing – typically over claims that the lack of accountability and control that subleases provide produces instability, lack of safety, and, ultimately, devalues the properties within the Homeowner’s Association.
Real Estate tips:
How about that sublease definition? Now you got a better grasp at it, right? We’ll bet you a real estate agent can bring even more insight into that; contact one now!
Popular Real Estate Terms
The time period a real estate investment is held. The return is tied to the time period of the investment. The period is used for income tax purpose to determine whether a profit earned or ...
The term market segmentation is mostly used in marketing for assembling prospective buyers in groups based on their needs and their response to a marketing action. One definition of market ...
Premiums in insurance and real estate define as a bonus or surplus money. A dividend means a periodic fee you have to pay for your insurance protection. While in real estate, a premium ...
Exposed heating unit located within a room that transfers heat generated by hot water or stream through conduction. The surrounding air circulates around the radiator using convection ...
The floor of a building closets to the building grade. Normally, the ground floor of a building is the first floor. A ground floor can sometimes be located between the first floor and the ...
An inlaid stone or wood flooring arranged in tightly fitting geometrical patterns. It is decorative and often more than one color. ...
Issued to correct errors in another deed such as spelling errors in a name or an improper legal description. For example, a correction deed was issued to the property owner Smith to amend ...
Real estate held for productive use or investment. Land is recorded at the acquisition price plus incidental costs including real estate commissions attorney's fees, escrow fees, title, ...
Form of financing that replaces or "takes-out" a construction loan to a developer. The take-out loan is a permanent mortgage loan which replaces the construction loan when, commonly, the ...
Have a question or comment?
We're here to help.