Lease and Sublease - they may seem like similar concepts, but in reality, they have significant differences.
Many people confuse them, which can lead to misunderstandings and legal issues. Therefore, it is important to understand what these terms actually mean and what their legal implications are.
Lease: A lease occurs when the owner of a property rents out their property to a tenant. This means that the owner directly enters into a contract with the tenant and grants them the right to use the property for a certain fee. The rules of leasing are set out in the Civil Code and may vary depending on whether the contract is concluded for a fixed or indefinite period.
Sublease: In contrast to leasing, sublease refers to the situation where the tenant rents out part or all of the property to another person, known as the subtenant. The owner of the property is not directly involved in the contractual relationship between the tenant and the subtenant. The rules of subleasing are set out in the sublease agreement, which may have different terms than the lease agreement between the owner and the tenant.
Tenant's Rights vs. Subtenant's Rights: It is important to note that the rights of a subtenant are usually more limited than those of a tenant. For example, if the lease agreement expires, the sublease agreement also automatically terminates. Some landlords may exploit this by formally leasing the apartment to their close relatives, who then enter into a contract with the actual tenant. This gives them the option of easily terminating the sublease.
Understanding the difference between leasing and subleasing can protect your rights and prevent potential complications in the future. Keep these facts in mind when entering into lease agreements and be cautious!
Lease vs. Sublease: Learning from Examples
Let's illustrate the difference between leasing and subleasing with a specific case:
Mrs. Novotná owns an apartment, which she leases to Mr. Adam. Mr. Adam thus becomes the tenant in Mrs. Novotná's apartment. However, Mr. Adam feels that he could use the apartment differently and decides to sublet the apartment to his friend, Mrs. Dvořáková.
So what are the legal differences in their situation? When Mrs. Novotná terminates the lease agreement with Mr. Adam, Mrs. Dvořáková must also move out. Sublease depends on the lease agreement.
But that's not all. The position of the subtenant is usually weaker than that of the tenant. For example, the sublease agreement may prohibit running a business in the apartment or having pets, which is not common in the lease agreement.
Another important difference is the ability to terminate the contract. Sublease agreements can usually be terminated without cause if the parties do not agree otherwise. This is a significant difference compared to a lease, which can only be terminated for legal reasons or by agreed conditions in the lease agreement.
Sometimes, we encounter a tactic where one person formally leases an apartment to a relative, who then sublets it to a third party. The goal is to limit the subtenant's rights. However, this cannot be recommended as it may constitute circumvention of the law.
It is important to understand the difference between leasing and subleasing and to be cautious when entering into contracts to protect your rights and avoid potential complications in the future.
