Sublease Agreement Template (India) — Free Format
A sublease agreement is a contract in which a tenant (the sublessor) lets all or part of the premises they rent to another person (the sublessee) for a period within their own lease term. The original lease continues, and the tenant stays responsible to the landlord for the premises.
Stamp, registration and e-sign at a glance
The three things to settle before anyone signs this agreement in India.
Payable under the stamp law of the state where it is signed; rates vary by state. Unstamped, it cannot be used as evidence until duty and penalty are paid. Duty on a sublease usually follows the lease rates and depends on the term, rent and deposit.
Check your state's rateMandatory for a sublease of more than one year, or from year to year (Registration Act, 1908, s.17(1)(d)). Some states, notably Maharashtra (Section 55, Maharashtra Rent Control Act, 1999), require all leave-and-licence agreements to be registered.
A sublease can be e-signed under the Information Technology Act, 2000: since S.O. 4720(E) of 2022 the First Schedule no longer excludes contracts for the sale or conveyance of immovable property or any interest in it. A registrable sublease still has to be presented before the Sub-Registrar (Registration Act, 1908), so check your state's registration process, including any e-registration option, before signing electronically.
What cannot be e-signedWhat is a Sublease Agreement?
Under Section 108(j) of the Transfer of Property Act, 1882, a lessee may transfer their interest or sublet in the absence of a contract or local usage to the contrary. The Model Tenancy Act, 2021 (Section 7, where a state has adopted it) bars subletting without the landlord's written consent, and Section 14(1)(b) of the Delhi Rent Control Act, 1958 makes unauthorised subletting an eviction ground. Many leases and state rent control laws restrict or prohibit subletting without the landlord's consent, and a breach can lead to eviction. A sublease is a fresh lease between sublessor and sublessee, for a shorter term than the head lease, and the sublessee has no direct contract with the landlord.
When to use it
- A tenant wants to rent part of an office or shop to another business
- A company moves out early and sublets the remaining term of its lease
- A coworking or shared office operator lets desks or rooms
- A tenant is relocating and wants someone to cover the remaining lease period
Key clauses checklist
Make sure your draft covers each of these. Linked clauses open a sample wording with drafting tips.
- Reference to the head lease and the landlord's consent
- Subleased premises, term and rent
- Security deposit and lock-in
- Permitted use and compliance with the head lease
- Termination on end of head lease Sample clause
- Maintenance, utilities and repairs
- Stamp duty and registration Sample clause
- Dispute resolution Sample clause
Indian law notes
Right to sublet
Section 108(j) of the Transfer of Property Act, 1882 lets a lessee sublet in the absence of a contract or local usage to the contrary, and the original lessee remains liable to the lessor. Many leases forbid subletting without written consent, and state rent control Acts often restrict it. Obtain the landlord's written consent first.
Registration
A lease of immovable property for more than one year, or from year to year, must be made by a registered instrument (Section 107, Transfer of Property Act, 1882; Section 17(1)(d), Registration Act, 1908). The same rule applies to a sublease of that length. Some states, notably Maharashtra (Section 55, Maharashtra Rent Control Act, 1999), require all leave-and-licence agreements to be registered, whatever their term.
Sublease vs sub-licence
A sublease transfers an interest in the property; a sub-licence only gives permission to use it. The label does not decide the question, the substance does, including exclusive possession. Choose the structure deliberately, as it changes stamp duty and tenant protection.
SUBLEASE AGREEMENT This Sublease Agreement is made on [Date] at [City] BETWEEN [Sublessor Name], having its address at [Address] (the "Sublessor"), the tenant under the Head Lease described below, AND [Sublessee Name], having its address at [Address] (the "Sublessee"). WHEREAS A. By a lease dated [Date] (the "Head Lease"), [Landlord Name] (the "Landlord") leased the premises at [Address] (the "Premises") to the Sublessor for a term ending on [Date]. B. The Head Lease permits subletting with the Landlord's written consent, which has been given by a letter dated [Date] (a copy of which is attached). C. The Sublessor wishes to sublet [the whole / the part marked [ ] of] the Premises (the "Subleased Premises") to the Sublessee. 1. SUBLEASE AND TERM The Sublessor sublets the Subleased Premises to the Sublessee for a term of [ ] months starting [Date] and ending [Date], which shall not extend beyond the term of the Head Lease. 2. RENT The Sublessee shall pay rent of Rs. [Amount] per month, in advance, on or before the [5th] day of each month by bank transfer, plus applicable GST where the Sublessor is registered and the law requires. Rent shall increase by [ ]% after each 12 months. 3. SECURITY DEPOSIT The Sublessee has paid a refundable, interest-free security deposit of Rs. [Amount], to be returned within [30] days of vacating, after deducting unpaid dues and the cost of repairing damage beyond normal wear and tear. 4. USE The Subleased Premises shall be used only for [purpose]. The Sublessee shall comply with the terms of the Head Lease, which it has read, and with all laws and building rules. 5. MAINTENANCE AND UTILITIES The Sublessee shall pay for electricity, water, internet and its share of maintenance charges of Rs. [ ] per month, and shall keep the Subleased Premises in good condition. 6. NO FURTHER TRANSFER The Sublessee shall not sublet, assign or part with possession of the Subleased Premises, or make structural alterations, without the written consent of the Sublessor and the Landlord. 7. SUBLESSOR'S OBLIGATIONS The Sublessor shall pay rent under the Head Lease on time, keep the Head Lease in force, and give the Sublessee quiet enjoyment of the Subleased Premises. 8. TERMINATION 8.1 Either party may end this Agreement before the end of the term by giving [3] months' written notice, after a lock-in period of [ ] months. 8.2 If the Head Lease ends for any reason, this Sublease ends on the same date. The Sublessor shall give the Sublessee notice of any default under the Head Lease promptly. 8.3 On termination, the Sublessee shall hand over vacant possession of the Subleased Premises in good condition. 9. DISPUTE RESOLUTION Disputes shall be referred to arbitration by a sole arbitrator under the Arbitration and Conciliation Act, 1996, seated at [City]. The courts at [City] have jurisdiction for interim relief. 10. STAMP DUTY AND REGISTRATION The cost of stamp duty and registration shall be borne by [the Sublessee / equally]. This Sublease shall be registered where required by law. IN WITNESS WHEREOF the parties have signed this Agreement on the date written above. Sublessor: ____________ Sublessee: ____________ Witnesses: 1. ____________ 2. ____________
Replace every [placeholder] and delete options that do not apply. Check the stamp duty in your state
How to execute it
From blank template to a signed, stamped and stored contract.
Read your head lease and any state rent law for restrictions on subletting; get the landlord's written consent before you sign.
Fix the sublease term so that it ends before the head lease does, and set rent, deposit and lock-in.
Attach the landlord's consent letter and a copy of the head lease to the agreement.
Pay stamp duty at the state rate and register the sublease if the term exceeds one year, is from year to year, or reserves a yearly rent (Section 107, Transfer of Property Act; Section 17(1)(d), Registration Act), or if your state requires it.
Keep paying rent to the landlord under the head lease, and keep records of the rent received from the sublessee.
Frequently asked questions
Can a tenant sublet in India?
The Transfer of Property Act, 1882 allows a lessee to sublet unless the lease says otherwise (Section 108(j)). Most leases and many state rent laws require the landlord's consent, and subletting in breach can lead to eviction.
Does the landlord have to approve a sublease?
If the head lease or state law requires it, yes. Even where not strictly required, get written consent to avoid disputes.
Does a sublease need to be registered?
A sublease for more than one year, or from year to year, must be registered under the Registration Act, 1908. Some states, notably Maharashtra, require leave-and-licence agreements to be registered whatever the period.
Who is responsible for the rent to the landlord?
The original tenant remains liable to the landlord for rent and for breaches of the head lease, even if the sublessee defaults. The sublease should therefore protect the sublessor.
Related templates
Stop emailing Word files around
Turn this format into an approved template, collect approvals, buy e-stamp paper, send it for Aadhaar eSign and get reminded before it renews.