Sublease essentially implies renting the property from a lessee and then renting it out to a subtenant. The principal tenant who has entered into the rental agreement with the owner remains accountable to him for observance of all the terms and conditions pertaining to the lease.
In the event of subtenant defaulting on the rent front or causing damage to the property, the principal tenant remains liable to own it up and to pay the penalties accrued. To stave off such incidents, the Principal tenant takes a security deposit from the subtenant and charges the rent directly from him.
The Principal Tenant assumes the responsibility of the landlord for the subtenant and may terminate the agreement with him by tendering prior legal notice. The contract agreement to sublease customarily requires granting of explicit permission by original landlord to sublease and the validity is expressly indicated by the signature of the later on the contract.