If Properties are sub-let, the lease can be cancelled if the tenant declares Insolvency
There are cases that differ from commercial property management to residential letting, in that there tends to be more sub-leases in commercial property than in residential rentals.
It often happens that one company will rent a whole building and then sub-let portions of the space they have signed for. It must be remembered in these cases that the entity responsible for the rent is the company that signed the original lease with the landlord.
But what happens in cases where the company holding the lease goes bankrupt? Most commercial leases will be held by a juristic person (a company or a close corporation). If the company were to go under, the liquidator steps in and performs the duties of the tenant, and must collect rent from sublets as well as paying rental to the landlord. To continue reading click here…