What is a sublease?

A sublease is defined as an agreement where a tenant (the original lessee) leases a portion of the property they are renting to another party, which means that the tenant does not retain the full leasehold interest. In a sublease, the original tenant remains responsible to the landlord for the obligations under the main lease, while also granting some of their rights to the sublessee for a defined period. This typically involves renting out either a part of the property or for a term that is shorter than the original lease.

Understanding that it refers to less than the entire leasehold interest is crucial. In contrast, a lease of the entire property would involve the original tenant leasing the full interest to someone else, which is distinct from a sublease. Additionally, a lease that extends beyond the original term would indicate a continuation of the original lease rather than a sublease scenario, where the sublease cannot exceed the term of the primary lease. Lastly, a contract to sell the property represents a completely different type of agreement and is unrelated to leasing terms. Thus, characterizing a sublease as less than the entire leasehold captures its essence accurately.