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Free Sublease Agreement Template — Philippines

A sublease agreement (Kasunduan ng Pag-uupa Muli) drafted in line with Philippine law for lessees who wish to sublet residential or commercial premises, with full attention to Articles 1650-1652 of the Civil Code of the Philippines and the written-consent requirement of the original lessor. Configure parties, term, rent, deposit, and consent status, then download a professional PDF ready for signing.

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CONTRACT OF SUBLEASE
SUBLESSOR (ORIGINAL LESSEE)
Juan Carlos dela Cruz
Unit 2305 The Grove by Rockwell, E. Rodriguez Jr. Ave., Pasig City 1605 · TIN 008-765-432-000 · +63 917 234 5678
SUBLESSEE
Roberto Santos
102 Mabini St., Brgy. Poblacion, Cebu City 6000 · TIN 007-654-321-000 · +63 917 345 6789
Commencement: July 1, 2026 · Expiry: April 30, 2027
Sublease Rent: 15,000.00 PHP/month
This Contract of Sublease (the "Agreement") is entered into on July 1, 2026 in Pasig City, Republic of the Philippines, by and between Juan Carlos dela Cruz ("Sublessor"), the original lessee under the original lease described below, and Roberto Santos ("Sublessee"). The Sublessor is the lessee of the property described below under a contract of lease with the original lessor, Maria Cristina Reyes ("Original Lessor"). The Sublessor hereby subleases and the Sublessee hereby accepts in sublease the Subleased Premises on the terms set out below. This Agreement is governed by Articles 1650 to 1652 of the Civil Code of the Philippines (Republic Act No. 386), the lease provisions of Articles 1642 to 1688, and the Rent Control Act of 2009 (Republic Act No. 9653, as extended to 31 December 2027 by RA 11571), where applicable, and all applicable Philippine laws.
1.
ORIGINAL LEASE
The Sublessor holds the property at Unit 2305 The Grove by Rockwell, E. Rodriguez Jr. Ave., Pasig City 1605 (the "Property") under a contract of lease with the Original Lessor dated May 1, 2026 and expiring on April 30, 2027 (the "Original Lease"). This Sublease Agreement is made in accordance with and subject to the terms of the Original Lease. The Sublessee shall not do or omit to do anything that would cause the Sublessor to breach the Original Lease. Pursuant to Article 1651 of the Civil Code, the Sublessee is directly bound to the Original Lessor for all acts referring to the use and preservation of the Property in the manner stipulated between the Original Lessor and Sublessor.
2.
SUBLEASED PREMISES
The Sublessor hereby subleases to the Sublessee the following (the "Subleased Premises"): the Property located at Unit 2305 The Grove by Rockwell, E. Rodriguez Jr. Ave., Pasig City 1605, specifically the Master bedroom with private bath. The Sublessee shall use the Subleased Premises only as described in this Agreement and consistent with the permitted use under the Original Lease and all applicable Philippine laws and regulations.
Property AddressUnit 2305 The Grove by Rockwell, E. Rodriguez Jr. Ave., Pasig City 1605
Subleased PortionMaster bedroom with private bath
Property TypeCondominium Unit
CommencementJuly 1, 2026
ExpiryApril 30, 2027
Original LessorMaria Cristina Reyes
3.
CONSENT TO SUBLEASE
The Sublessor warrants that the prior written consent of the Original Lessor (Maria Cristina Reyes) to this sublease has been obtained, in compliance with Article 1650 of the Civil Code and the original lease contract. A copy of the consent shall be attached as an annexe.
4.
TERM
The sublease shall commence on July 1, 2026 and expire on April 30, 2027 (the "Sublease Term"). The Sublease Term shall not extend beyond the expiry date of the Original Lease. At the expiry of the Sublease Term, the Sublessee shall vacate the Subleased Premises and return possession to the Sublessor in good and clean condition, fair wear and tear excepted. Any holding over shall require the written agreement of both the Sublessor and the Original Lessor.
5.
RENT
The Sublessee shall pay to the Sublessor a monthly rent of 15,000.00 PHP per month (the "Sublease Rent"), payable in advance on or before the 5th day of each calendar month throughout the Sublease Term. Payment shall be by bank transfer (BDO, BPI, Metrobank, GCash, InstaPay/PESONet) or cash. The Sublease Rent is a separate obligation from any rent payable by the Sublessor to the Original Lessor. Where the Sublease Rent does not exceed PHP 15,000 per month, it is exempt from VAT under Sec. 109(Q) of the NIRC.
6.
ADVANCE RENT AND SECURITY DEPOSIT
Upon execution of this Agreement, the Sublessee shall pay to the Sublessor: (a) 1 month advance rent equivalent to 15,000.00 PHP, applied as rent for the first month of the Sublease Term; and (b) a security deposit equivalent to 1 month' Sublease Rent in the amount of 15,000.00 PHP (the "Security Deposit"). These amounts comply with Sec. 6 of RA 9653 for residential leases. The Security Deposit shall be held by the Sublessor as security for the Sublessee's faithful performance and shall be returned (less permitted deductions for unpaid rent and damage beyond fair wear and tear) within thirty (30) days after the expiry or earlier termination of this Agreement and the Sublessee's vacate.
7.
PERMITTED USE
The Sublessee shall use the Subleased Premises solely for Private residential use only, consistent with the permitted use under the Original Lease. The Sublessee shall not use the Subleased Premises for any commercial, business, illegal, or immoral purpose (where the Original Lease is residential), or in any manner that would constitute a nuisance under Articles 694-707 of the Civil Code or breach of any applicable law. The Sublessee shall comply with all rules of the building management, condominium corporation (under RA 4726), homeowners' association (RA 9904), and the Local Government Unit.
8.
UTILITIES
Utility charges shall be shared between the Sublessor and Sublessee as agreed in writing prior to commencement. The Sublessor shall remain responsible for the principal utility accounts with the Original Lessor (or in the Sublessor's name with the relevant providers). The Sublessee shall promptly pay any agreed utilities contribution to the Sublessor or, where assigned, directly to the providers. Each party shall cooperate in good faith with respect to utility account arrangements.
9.
NO FURTHER SUBLETTING
The Sublessee shall not further sublet, assign, or otherwise part with possession of the Subleased Premises (in whole or in part) to any third party under any circumstances. The Sublessee shall not permit any person other than the Sublessee and the Sublessee's immediate family (where the use is residential) to reside in the Subleased Premises without the prior written consent of the Sublessor and the Original Lessor. Any breach of this clause shall entitle the Sublessor to terminate this Agreement forthwith and to seek ejectment under the Revised Rules on Summary Procedure and (for residential premises) under Sec. 7(a) of RA 9653 (Rent Control Act).
10.
OBLIGATIONS OF THE SUBLESSEE
Pursuant to Article 1657 of the Civil Code, the Sublessee shall: (a) pay the Sublease Rent according to the terms stipulated; (b) use the Subleased Premises as a diligent buen padre de familia (good father of a family) and only for the purpose stipulated; (c) make ordinary repairs and minor repairs not exceeding two thousand pesos (PHP 2,000) per occurrence; (d) promptly notify the Sublessor in writing of any damage, defect, or third-party encroachment requiring the Sublessor's or Original Lessor's attention; and (e) return the Subleased Premises upon expiry in the condition received, fair wear and tear excepted.
11.
TERMINATION
Either party may terminate this Agreement by giving the other not less than 1 month' written notice. In addition, this Agreement shall automatically terminate: (a) if the Original Lease is terminated for any reason; (b) if the Original Lessor withdraws consent to the sublease (where consent was required); or (c) upon any of the grounds for ejectment under Sec. 7 of RA 9653 (for residential premises) or material breach (for commercial premises). In the event of automatic termination under (a), (b), or (c), the Sublessor shall give the Sublessee reasonable notice (not less than two (2) weeks where practicable) and shall refund the unused portion of the Security Deposit pro-rata, less permitted deductions. Possession shall be recovered, where necessary, by judicial ejectment proceedings; self-help eviction is prohibited under Philippine law and exposes the Sublessor to liability under Article 19 of the Civil Code.
12.
GOVERNING LAW AND VENUE
This Agreement is governed by and construed in accordance with the laws of the Republic of the Philippines. Any action or proceeding shall, subject to mandatory barangay conciliation under Sec. 412 of the Local Government Code (RA 7160) where applicable, be filed before the courts of competent jurisdiction in Pasig City, in accordance with Rule 4 of the 1997 Rules of Civil Procedure. Ejectment actions shall be filed before the Metropolitan Trial Court / Municipal Trial Court of the venue and shall be governed by the Revised Rules on Summary Procedure. This Agreement may be executed electronically under the Electronic Commerce Act of 2000 (RA 8792) and notarised under the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC) for use as a public document.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.
SUBLESSOR (ORIGINAL LESSEE)
Juan Carlos dela Cruz
Date: ____________________
SUBLESSEE
Roberto Santos
Date: ____________________

What is a sublease agreement?

A sublease agreement is the contract by which the lessee under an existing master lease — known as the sublessor — grants part or all of the leased premises to a third party, the sublessee, for a portion of the original lease term. In the Philippines, subleasing is governed by Articles 1650 to 1652 of the Civil Code (Republic Act 386). Article 1650 sets the default rule: the lessee MAY sublease the thing leased, in whole or in part, when the contract does not contain any express prohibition. This is the inverse of many civil-law jurisdictions, where consent is required by default. Because most Philippine commercial and residential leases include express anti-sublease clauses, the practical reality is that written consent of the original lessor is almost always needed before a Filipino lessee can lawfully sublet.

Article 1651 of the Civil Code provides that without prejudice to his obligation toward the sublessor, the sublessee is bound to the lessor for all the acts which refer to the use and preservation of the thing leased in the manner stipulated between the lessor and the lessee. Article 1652 makes the sublessee subsidiarily liable to the lessor for any rent due from the sublessor, but this liability is limited to the rent due from him at the time of the extrajudicial demand, taking into consideration the advance payments to the sublessor unless made in violation of the lease. These three articles establish a triangular legal relationship between original lessor, sublessor (original lessee), and sublessee that requires careful contractual drafting in the Philippines.

For RA 9653 covered residential units in the Philippines (rent ≤ ₱10,000 in Metro Manila and other highly urbanized cities, ≤ ₱5,000 elsewhere), Section 7(a) of the Rent Control Act expressly lists "assignment of lease or subleasing of residential units in whole or in part, including the acceptance of boarders or bedspacers, without the written consent of the owner/lessor" as a ground for judicial ejectment. This means an unauthorised sublease is not just a contractual breach — it is a statutory ground for eviction of the original lessee under Philippine law. For commercial premises and uncovered residential units, Article 1673(3) of the Civil Code provides parallel remedies. A properly drafted sublease agreement in the Philippines therefore must evidence the written consent of the original lessor or fall within an express contractual permission to sublet.

What this template covers

The Doxuno sublease template includes every clause required under Philippine law for an enforceable sublet, plus the consent and disclosure mechanics needed to protect both sublessor and sublessee against original-lessor objections.

Sublessor identification (original lessee)

Full legal name, TIN, current Philippine address and contact details

Sublessee identification

Full legal name, TIN, address — full party identification under Civil Code Art. 1305

Premises and sublet portion

Whole property or specific room/section, square metres

Reference to original master lease

Date, original lessor, term, monthly rent — evidentiary continuity

Original lessor consent status

Obtained, pending, or contractually permitted under Art. 1650

Sublease term and commencement

Subordinate to master lease — never exceeds original expiry date

Monthly sublease rent

In Philippine peso (₱) — independent of master rent

Advance rent and security deposit

Typically 1-2 months in Philippine sublease practice

Permitted use and conditions

Same use as original lease — change of use prohibited under Art. 1657

Article 1651 sublessee obligations

Direct duty to original lessor for use and preservation

Article 1652 subsidiary rent liability

Limited to rent due from sublessee at extrajudicial demand

Termination on master lease end

Sublease automatically terminates with master lease — disclosure clause

How to create your sublease

No prior legal training required. The Doxuno generator walks you through each section to produce a professional PDF valid throughout the Philippines.

  1. 1

    Confirm authority to sublease

    Read your master lease carefully. Article 1650 of the Civil Code of the Philippines gives the lessee the right to sublease unless the contract expressly prohibits it. Most Philippine commercial and residential leases contain a "no sublease without written consent" clause. Where a prohibition exists, obtain the written consent of the original lessor BEFORE signing the sublease — without it, you risk ejectment under Section 7(a) of RA 9653 (covered residential units) or Article 1673(3) of the Civil Code (commercial and uncovered residential).

  2. 2

    Identify sublessor and sublessee

    Enter the full legal name, current Philippine address, Tax Identification Number (TIN), and contact details of the sublessor (you, as original lessee) and the sublessee. For corporate parties, include SEC registration number and authorised signatory. Complete identification supports validity under Article 1305 of the Civil Code of the Philippines and ensures enforceability before any Philippine Metropolitan or Municipal Trial Court if disputes arise.

  3. 3

    Reference the master lease and define the sublet portion

    State the date of execution of the original master lease, the original lessor's name, the master lease term, and the monthly master rent. Specify whether the sublease covers the whole premises or only a portion (a room, a floor, a desk in a co-working setup), and indicate the floor area in square metres. This disclosure is required to prevent claims that the sublessee was misled about the nature of the arrangement under Articles 19 and 21 of the Civil Code of the Philippines.

  4. 4

    Set sublease rent, term, advance, and deposit

    Enter the monthly sublease rent in Philippine peso (₱), advance rent (typically zero to two months in sublease practice), security deposit (typically one to two months), and the sublease term. CRITICAL RULE: under Article 1650 of the Civil Code of the Philippines, the sublease cannot extend beyond the expiry of the master lease — any provision purporting to do so is void. Best practice in the Philippines is to set the sublease expiry at least one (1) day before master expiry to avoid any conflict at termination.

  5. 5

    Sign and disclose

    Generate the PDF and have both sublessor and sublessee sign every page. Attach a copy of the original lessor's written consent as an annex (Annex "A"). Where the master lease was notarized, market practice in the Philippines is to also notarize the sublease before a Notary Public commissioned under the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC). For sublease terms exceeding one (1) year, Article 1358 of the Civil Code requires a public instrument and registration with the Register of Deeds becomes available.

Legal considerations in the Philippines

Subleasing in the Philippines creates a triangular legal relationship that requires careful attention to consent, scope, and direct sublessee duties to the original lessor.

This template is provided for informational purposes only and does not constitute legal advice. For high-value premises, complex commercial sub-arrangements, or doubts about the application of Philippine law to your specific case, please consult a licensed lawyer admitted to the Integrated Bar of the Philippines (IBP).

Reviewed by legal professionals. The content of this page and the template clauses have been reviewed against the Civil Code of the Philippines (RA 386), the Rent Control Act (RA 9653 as extended by RA 11571), and the Local Government Code (RA 7160), ensuring legal soundness for residential and commercial subleases in the Philippines.

Civil Code Articles 1650-1652 — the legal triangle

Subleasing in the Philippines is governed by three short but powerful provisions of the Civil Code (RA 386). Article 1650 provides that "the lessee may sublet the thing leased, in whole or in part, when the contract does not contain any express prohibition, without prejudice to his responsibility for the performance of the contract toward the lessor." This default permission is significant — it inverts the rule of many civil-law countries. Article 1651 provides that "without prejudice to his obligation toward the sublessor, the sublessee is bound to the lessor for all acts which refer to the use and preservation of the thing leased in the manner stipulated between the lessor and the lessee." Article 1652 establishes that "the sublessee is subsidiarily liable to the lessor for any rent due from the lessee. However, the sublessee shall not be responsible beyond the amount of rent due from him, in accordance with the terms of the sublease, at the time of the extrajudicial demand by the lessor." Together, these articles create a triangular relationship that every Philippine sublease contract must address.

Written consent of original lessor

Although Article 1650 of the Civil Code permits subleasing by default, in the Philippines almost all commercial leases and the great majority of residential leases include an express prohibition or consent-required clause to override this default. Where the master lease prohibits subleasing, an unauthorised sublet is a breach giving the original lessor the right to rescind under Article 1659 and to file an unlawful detainer action under Rule 70 of the Rules of Court. For RA 9653 covered residential units (rent ≤ ₱10,000 NCR / ≤ ₱5,000 elsewhere in the Philippines), Section 7(a) of the Rent Control Act elevates this to a statutory ground for judicial ejectment — including the express extension to "boarders or bedspacers" without written consent. Best practice in the Philippines is therefore always to obtain the original lessor's WRITTEN consent (countersigned letter, side agreement, or annex) before executing the sublease, regardless of what the master lease permits, and to attach the consent as an exhibit.

Sublease cannot exceed master lease term

A fundamental rule of Philippine sublease law, derived from Article 1311 of the Civil Code and reinforced in jurisprudence (see Hidalgo Enterprises v. Balandan-Reyes), is that the sublease is necessarily SUBORDINATE to the master lease. The sublessor cannot grant rights that exceed his own — therefore the sublease automatically terminates upon expiry, rescission, or termination of the master lease, regardless of the sublease's own stated term. The Civil Code of the Philippines expressly recognises this in Article 1654 by treating the sublessee as bound by the master lease in matters of use and preservation. Best Philippine practice is to set the sublease expiry at least one (1) day before master expiry, include a clear disclosure clause acknowledging this subordination, and provide for early termination of the sublease if the master lease ends prematurely. The sublessee should always be informed of the master lease expiry date before signing in the Philippines.

Tax and BIR compliance for sublessor

When the sublessor receives sublease rent in the Philippines, this is income subject to declaration. If the sublessor is an individual with annual gross sublease receipts plus other income exceeding ₱3,000,000, registration for VAT under Section 105 of the NIRC is required and twelve percent (12%) VAT must be charged on the sublease rent. Below the threshold, the sublessor may opt for three percent (3%) percentage tax under Section 116 or the eight percent (8%) income-tax option of the TRAIN Law (RA 10963, RR 8-2018). The sublessor must issue BIR-registered Official Receipts for every collection. Where the sublessee is a top-20K corporation or government withholding agent under RR 11-2018, five percent (5%) Expanded Withholding Tax (EWT) must be withheld and BIR Form 2307 issued. For the original lessor's side, sublease arrangements do not affect the original lessor's VAT/EWT mechanics — the master rent and sublease rent are taxed independently throughout the Philippines.

Frequently Asked Questions

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