Definition of "Sublease"

Pam  Gabriel real estate agent

Written by

Pam Gabrielelite badge icon

RE/MAX Lakefront Realty Inc

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!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Mortgage banker is the person or business that originates mortgages and receives payments. The mortgage banker typically sells these mortgages to investors and obtains service fees for the ...

Insurance coverage provided for an individual having a lease at a favorable rate, one which is less than the market value of the property. The insurance indemnifies the tenant for business ...

The definition of the price-to-rent ratio is very important for real estate investors. This ratio is a measurement for the affordability of a particular rental property and tells investors ...

Agequake is not the era of earthquakes! It’s a term that was coined by author Paul Wallace in his 1999 book “Agequake: Ridding the demographic rollercoaster shaking business, ...

Bank modifies the borrower's mortgage obligation, such as when the bank approves the homeowner's request for an extension of time to pay because of illness or loss of a job. One's ...

Personal income minus personal income tax payments and other government deductions. It is the personal income available for people to spend or save; also called take-home pay. It may be a ...

Combination of IRC 1034 and 121 dealing with the sale of a personal residence with the once-in-a-lifetime $125,000 exclusion that may be available for the "over-55" seller. Should the ...

Map presented to a municipality's planning agency by a real estate developer for consideration and approval. ...

A method of purchasing real estate whereby a maximum amount of leverage is used. Normally the seller will finance the down payment necessary to acquire a mortgage. Thus, the purchaser is ...

Popular Real Estate Questions