The main lease agreement that permits someone to sublease a property to another person is called a headlease. It is alternatively referred to as a primary lease or chief lease.
A headlease is the main lease agreement between a landlord and a tenant, allowing the tenant to sublease the property to another tenant. For example, John leases a commercial property to Sarah for five years, and Sarah then subleases it to a retail store owner for three years. In this case, the lease between John and Sarah is the headlease, while the sublease between Sarah and the retail store owner is the sublease. This demonstrates how a headlease functions in real estate, with the tenant acting as a middleman and managing the sublease agreement.
A headlease is a legal agreement between a landlord and a tenant, where the landlord grants the tenant the right to occupy and use a property for a specified period of time.
A headlease is a direct agreement between the landlord and the tenant, while a sublease is an agreement between the tenant and a third party, where the tenant becomes the landlord and sublets the property to someone else.
Generally, a headlease cannot be terminated before the agreed-upon period, unless there is a provision in the lease agreement allowing for early termination or if both parties mutually agree to terminate the lease.
The landlord is responsible for maintaining the property, ensuring it is in a habitable condition, and addressing any necessary repairs or maintenance issues.
The tenant may be allowed to make alterations to the property, but this is typically subject to the landlord’s approval and may require written consent.
The landlord generally cannot increase the rent during the headlease term unless there is a provision in the lease agreement allowing for rent adjustments or if both parties agree to a rent increase.
If the tenant fails to pay rent, the landlord may have the right to terminate the lease agreement, evict the tenant, and pursue legal action to recover any unpaid rent.
The tenant may be able to assign or transfer the headlease to another party, but this is typically subject to the landlord’s approval and may require written consent.
If the property is damaged during the headlease term, the landlord is generally responsible for repairing the damage, unless the damage was caused by the tenant’s negligence or intentional actions.
The landlord typically cannot enter the property without the tenant’s permission, except in certain circumstances such as emergencies or if there is a provision in the lease agreement allowing for landlord access with proper notice.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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