Know Your Clause

SUBLETTING

“Tenants, do you know that understanding the clauses stated in your lease document is critical to your thriving businesses at the parks? Your lease is an agreement that guides the relationship between you – the tenants; and e TecK- the landlord, therefore operating within these terms and conditions means less stress for both parties. Many times tenants may not be even aware that they are in breach because they have not reviewed their lease documents in detail; intimate knowledge of your lease document is key. Unfortunately, a breach can lead to the forfeiture of your lease but this can be avoided if the correct procedure is followed.”

“Know Your Clause” is a new segment to promote greater awareness and understanding of critical clauses found in tenants’ lease documents. Over the next few months, we will be highlighting clauses such as: – User, Additions, Alterations and Reconstruction, Assignment, Use of the Common Area and many more. We have already focused on the following:

This month we focus on Subletting.

Q.1. What is the Subletting Clause?

A.1.This is a clause in the Lease which provides guidelines on whether and in what circumstances subletting is permitted. It tells the Tenant whether another company and/or entity can be brought on to the Leased premises and what are the conditions for doing so.

Q.2. What does the Clause look like in my Lease?

A.2.The various lease formats contain different subletting clauses. In the new Lease format it is contained under the heading “Alienation”. The older formats contain a clause called “assignment”.

Q.3.What are the requirements for subletting?

A.2.Subletting is not permitted in any of the Lease formats unless the Tenant first requests and obtains the consent in writing of the Landlord, however, the clauses all state that such consent is not to be unreasonably withheld. If a Tenant is desirous of subletting part of his premises he first has to inform e TecK as Landlord in writing prior to allowing the sub lessee entry into the Premises. The Tenant has also to provide information on the Name of the Sub-lessee, the type of business and company documents for the company. Once the business of the sub-lessee accords with the general accepted use of the Park and the Tenant is not in any breach of the Lease arrangement, consent is granted.

Q.4. What happens if I do not receive consent?

A.4.Consent would only be refused where the Tenant is in breach of the Lease or the proposed sub lessee wishes to put the premises to a use which is not permitted on the Parks. In the case where the Tenant is in breach, he can remedy the breach and then seek consent.

Q.5. What steps do I take if this clause is breached?

Q.5.If this clause is breached the Tenant must take immediate steps to remedy same by removing the illegal sub-lessee. A breach of this clause entitles the Landlord to issue a notice before forfeiture and require the breach to be remedied, failing which re-entry can be initiated

Please call Tenants Relations at 1-868-224-1989 for further information on your Lease agreement.

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