OREA Form 515, Agreement to Sub-Lease - Commercial

What Is OREA Form 515?

OREA Form 515, Agreement to Sub-Lease - Commercial, is an offer by a new tenant searching for a place (the sub-tenant) to sub-lease premises from a tenant who is currently leasing a property (the sub-landlord). If it is accepted, and the acceptance is communicated to the other party, before the irrevocability deadline set in the form (its Notices clause says how documents are delivered), it binds the two parties to enter into the sub-lease itself, which the sub-landlord prepares as a separate document. The head landlord (the landlord under the existing head lease) is not a party to the agreement, but the offer is conditional on the head landlord approving the sub-tenant.

What Do I Need OREA Form 515 For?

You might need OREA Form 515 in the following cases:

• to set out the terms on which a commercial tenant may sub-lease the described part or all of its leased premises to a sub-tenant, subject to the head lease and to the head landlord approving the sub-tenant;
• to describe the obligations of the sub-tenant and provide sub-lease details such as duration, payment terms, and permitted use of the property;
• it is an effective way for a commercial tenant to share its lease obligations without terminating the contract with the head landlord (the tenant generally remains liable to the head landlord under the head lease unless the head landlord releases it; the sub-landlord and the sub-tenant both agree to fully comply with the terms of the head lease; where the sub-lease directly contradicts the head lease, the sub-lease terms apply between the two of them, but that does not change the head landlord's rights under the head lease).

How to Fill Out OREA Form 515?

PDFLiner allows you to choose the fillable OREA Form 515 from an online catalog and edit it with a wide range of convenient tools. You can download a PDF file on your computer or print it to complete a paper version. Here are several steps you need to follow to fill out a 515 Form printable blank:

The blank on this page has 6 pages: five pages of Form 515 (Revised 2014) and a one-page schedule that carries the OREA Form 516 footer (Schedule - Agreement to Sub-Lease - Commercial). OREA revises its forms periodically, so confirm the current edition with your brokerage. At the top of the first page, enter the full names of the sub-tenant and sub-landlord with the date the document was signed.

1. On pages 1 to 5, fill in the numbered clauses that make up the sub-tenant's offer to sub-lease the premises and its terms.
2. Review the pre-printed clauses that set out the parties' obligations. Form 515 makes the offer conditional on the head landlord approving the sub-tenant (clause 11); also check the head lease for any consent requirement.
3. Enter the term and rent dates in clauses 3 and 4 on page 1. On the last page (the Form 516 Schedule), enter the parties, the premises and the agreement date, and add additional information if necessary.
4. Complete the form by adding the signatures of both parties on page 5 and their initials in the boxes on pages 1-4 and on the Form 516 Schedule page. The form also has lines for witnesses, a guarantor, the confirmation of acceptance, acknowledgements and brokerage signatures on the commission trust agreement; complete those that apply to your deal.
5. Make sure all the information in the Agreement to Sub-Lease is correct.

Then you can save it and send the form online to the required recipient.

Organizations That Work with Form 515

• Real estate brokers;
• Real estate agencies.

PDFLiner is not affiliated with, endorsed by, or licensed by the Ontario Real Estate Association (OREA). OREA Standard Forms are copyright OREA and are developed for use by OREA members and licensees. The official current versions are maintained by OREA; the pre-set text of the form must not be altered when it is printed or reproduced.