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What are the cons of subleasing?

Three Cons of Subleasing Business Incompatibility. Depending on the zoning laws in the area, some businesses may not be allowed. Subtenant Defaults on Payment. Even though the subtenant pays rent to you, the entire space is still your responsibility according to the original lease. Rental Reliance.

What is a recognition and attornment agreement?

More specifically, a recognition agreement is a contract between a subtenant and a prime landlord under which the prime landlord agrees to recognize the subtenant and the sublease if the tenant/sublandlord defaults under the prime lease and the prime landlord terminates the prime lease.

What is sublet a contract?

A sublease is a legally binding contract made between a tenant and a new tenant (also known as a subtenant or a sublessee). The sublease gives the subtenant the right to share or to take over the rented premises from the original tenant.

What is a lender recognition agreement?

Recognition Agreement . An agreement whereby a Cooperative and a lender with respect to a Cooperative Loan (i) acknowledge that such lender may make, or intends to make, such Cooperative Loan, and (ii) make certain agreements with respect to such Cooperative Loan.

What are the risks of subletting?

Risk No. Nothing is Official or Documented. A lot of subletting happens completely outside of the lease agreement. Tenants May be Unreliable or Unscreened. Property Damage is Possible. Insurance Policies May Not Cover You. Removing a Tenant Can be Difficult.

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