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PLAYBOOK TEMPLATES
Construction Build-Out Agreement
A Construction & Build-Out Agreement governs property improvements or fit-outs between owner and contractor. This playbook discusses scheduling, change order processes, and liability for defects.
Assignment and Subletting
Negotiation strategy
Ensure that any assignment or subletting requires your prior written consent. Establish clear, objective criteria for approval to maintain control over the tenant mix and financial stability.
Negotiate for reasonable criteria for landlord consent to avoid arbitrary denials. Ensure that the process for obtaining consent is clear and not overly burdensome.
Essential elements
1
Landlord Consent
Requires landlord's prior approval.
2
Approval Criteria
Objective standards for consent.
3
Financial Qualifications
Assignee's financial capability check.
Action framework
ACCEPT
Propose edits if the clause lacks clear criteria for consent or financial qualifications.
EDIT
Reject if the clause allows assignment or subletting without any landlord consent.
ADD
Add language to specify financial qualifications and objective criteria for approval.
PRO TIP
Always include a clause that maintains the original tenant's liability unless explicitly released.
Real-world examples
FAVORABLE
Preferred Clause
"Tenant may not assign or sublet the premises without prior written consent from the landlord, which shall not be unreasonably withheld, conditioned, or delayed. The tenant must provide financial statements and other relevant information to demonstrate the assignee or sublessee's financial capability."
NEUTRAL
Fallback Clause
"Tenant may assign or sublet with landlord's consent, which shall be based on reasonable criteria."
UNFAVORABLE
Unfavorable Clause
"Tenant may freely assign or sublet without landlord's consent."
Alternative scenarios & positions
High-Risk Tenants
For tenants with a history of financial instability, require more stringent financial qualifications and regular updates on financial status.
Short-Term Leases
In short-term leases, consider more flexible assignment terms to accommodate tenant turnover while still protecting property interests.
Commercial Properties
For commercial properties, ensure that the assignee's business aligns with the property's use and does not disrupt existing tenants.
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WEEK 3
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WEEK 4
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