Subleases
67 Subleases
A sublease of a lease may be transferred only with the prior written consent of the lessor and lessee of the lease.
The lessor and lessee must not unreasonably withhold consent under subsection (1).
A sublease of a lease may be amended only with the prior written consent of the lessor of the lease.
The lessor must not unreasonably withhold consent under subsection (3).
An amendment of a sublease must not—
increase or decrease the area subleased; or
add or remove a party to the sublease; or
be lodged for registration after the sublease’s term has ended.
A sublease of a lease executed after the registration of a mortgage over the lease is valid as against the mortgagee only if the mortgagee agreed to the sublease before its registration.
An amendment of a sublease of a lease executed after the registration of a mortgage over the lease is valid as against the mortgagee only if the mortgagee agreed to the amendment before the registration of the document of amendment.
An obligation applying to the lessee under a lease continues to apply to the lessee even if the lease is subleased.
Subsection (8) does not stop the sublessee from agreeing, under the sublease, to fulfil the obligation for the lessor.Example for subsections (8) and (9)—A lessee’s obligation to ensure a private residential premises is built on lease land continues as the lessee’s obligation. However, the lessee and a sublessee may agree that the sublessee will build the premises.
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