In real estate law, sublease (or, less formally,sublet) is the name given to an arrangement in which the lessee in a lease assigns the lease to a third party, thereby making the old lessee the sublessor, and the new lessee the sublessee, or subtenant. This means you are renting and renting out the same property at the same time. For example, the owner of an office building may lease the whole building to a management company. This company may then sublease parts of the building to other people. The management company is said to "sublet" the property to the individual tenants by means of a sublease. In this event, the management company (which was previously the lessee under the original lease) becomes the sublessor, and the individual tenants are subtenants or sublessees.

Sublessor remains liable to the original lessor for any damage to the property and for payment of rent. Often the original lessee requires a lower rent payment from the sublessee than what he or she may have originally paid, leaving a partial amount of the rent left up to the original lessee.

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  • sublease — sub·lease / səb ˌlēs/ n: a lease that is given by a tenant or lessee to another person of part or all of the leased premises for a shorter term than that of the original lease and under which some interest is retained compare assignment of lease… …   Law dictionary

  • sublease — sub‧lease [ˈsʌb liːs ǁ sʌbˈliːs] noun [countable] PROPERTY an agreement in which someone who rents property from its owner then rents that property to someone else: • The firm has obtained subleases for its excess office space. sublease verb… …   Financial and business terms

  • sublease — [sub′lēs΄; ] for v. [ sub lēs′] n. a lease granted by a lessee to another person of all or part of the property vt. subleased, subleasing to grant, obtain, or hold a sublease of sublessee [sub΄les ē′] n. sublessor [sub les′ôr΄, sub΄les ôr′] n …   English World dictionary

  • Sublease — Sub lease , n. (Law) A lease by a tenant or lessee to another person; an underlease. Bouvier. [1913 Webster] …   The Collaborative International Dictionary of English

  • sublease — 1826 (n.); 1830s (v.); from SUB (Cf. sub ) + LEASE (Cf. lease). Related: Subleased; subleasing …   Etymology dictionary

  • sublease — UK [ˈsʌbˌliːs] / US [ˈsʌbˌlɪs] noun [countable] Word forms sublease : singular sublease plural subleases a contract that allows someone to rent a flat, house, or office from a person who is renting it from someone else Derived word: sublease UK… …   English dictionary

  • Sublease — A real property rental agreement between an original tenant and a new tenant. The most common type of lease arrangement is between the landlord who owns the property and a tenant. If that tenant finds him or herself unable to continue meeting the …   Investment dictionary

  • sublease — sub•lease n. [[t]ˈsʌbˌlis[/t]] v. [[t]sʌbˈlis[/t]] n. v. leased, leas•ing 1) law a lease granted to another person by the lessee of a property 2) law to grant a sublease of 3) law to take or hold a sublease of 4) law to grant or hold a sublease;… …   From formal English to slang

  • sublease — sublessee /sub le see /, n. sublessor /sub les awr, sub le sawr /, n. n. /sub lees /; v. /sub lees /, n., v., subleased, subleasing. n. 1. a lease granted by one who is already a lessee of a property, as an apartment. v.t. 2. to grant a sublease… …   Universalium

  • sublease — I. noun Date: 1826 a lease by a tenant or lessee of part or all of leased premises to another person but with the original tenant retaining some right or interest under the original lease II. transitive verb Date: circa 1843 to make or obtain a… …   New Collegiate Dictionary

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