Final answer:
In a subletting scenario, S could potentially increase the rent and make a profit, but typically remains liable for rents and damages to the property. T usually pays rent to S rather than the owner, all depending on the terms of the sublease and the original lease.
Step-by-step explanation:
Regarding the scenario in which 'S' wants to sublet their property to 'T' after three years into a five-year lease, certain legal and contractual issues apply. Subletting can result in several possible outcomes:
- (a) S could increase the rent and make a profit if the sublease agreement between S and T permits it, and if market conditions are favorable.
- (b) S has no further liability for rents or damages is generally false, as the original tenant (S) often remains liable to the landlord for rent and any damages unless an agreement states otherwise.
- (c) T is the only one who could be liable for damage to the property is incorrect, as the original tenant (S) may also be held responsible for damages caused by the subtenant (T).
- (d) T pays rent directly to the owner is also inaccurate in a subletting situation, as T would typically pay rent to S, and S would continue to pay the landlord unless the arrangement specifies otherwise.
It's crucial to understand the specific terms of the subleasing arrangement and the original lease contract to determine the responsibilities and liabilities of all parties involved.