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Lease Guarantee Agreement

Lease Guarantee Agreement Template for Australia

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Key Requirements PROMPT example:

Lease Guarantee Agreement

"I need a Lease Guarantee Agreement for a retail shopping center in Melbourne, where three individual guarantors will jointly guarantee a 5-year lease starting March 2025, with specific provisions for releasing any individual guarantor if they cease being a director of the tenant company."

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Document background
The Lease Guarantee Agreement is a crucial security document in Australian leasing transactions, commonly used when a landlord requires additional security beyond the tenant's covenant. This document is essential when leasing to new businesses, companies with limited trading history, or where the tenant's financial strength alone is insufficient. The agreement, governed by Australian law, details the guarantor's obligations, the extent of the guarantee, enforcement mechanisms, and release conditions. It typically accompanies the main lease agreement and may be required by financial institutions or property owners as a condition of entering into the lease. The document needs to comply with Australian property law, contract law, and relevant state-specific legislation regarding guarantees and property transactions.
Suggested Sections

1. Parties: Identifies all parties to the agreement: Guarantor(s), Landlord (Beneficiary), and Tenant (Principal Debtor)

2. Background: Outlines the context of the guarantee, including reference to the principal lease agreement and the reason for the guarantee

3. Definitions: Defines key terms used throughout the agreement

4. Guarantee and Indemnity: Core section detailing the guarantee obligations, including the scope of the guarantee and indemnity provisions

5. Duration of Guarantee: Specifies the term of the guarantee and any conditions affecting its duration

6. Nature of Guarantee: Establishes that the guarantee is continuing, irrevocable, and unconditional

7. Guarantor's Obligations: Details specific obligations and responsibilities of the guarantor

8. Preservation of Rights: Outlines the landlord's rights and how they are preserved under various circumstances

9. Payments: Specifies payment obligations, including timing and method of payments

10. Default and Enforcement: Describes what constitutes default and the enforcement rights of the landlord

11. Costs and Expenses: Addresses responsibility for legal and other costs related to the guarantee

12. Notices: Details how formal notices should be given between parties

13. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and severability

14. Execution: Formal execution block for all parties to sign

Optional Sections

1. Multiple Guarantors: Additional provisions when there is more than one guarantor, including joint and several liability

2. Corporate Guarantor Provisions: Specific provisions required when the guarantor is a corporation

3. Security Provisions: Details of any additional security provided to support the guarantee

4. Guarantee Limit: Include when the guarantee is limited to a specific amount

5. Release Conditions: Specific conditions under which the guarantor may be released from obligations

6. GST Provisions: Detailed GST-related provisions when applicable to the guarantee arrangements

7. Assignment and Transfer: Provisions regarding the ability to assign or transfer rights under the guarantee

8. Financial Reporting Requirements: When ongoing financial reporting from the guarantor is required

Suggested Schedules

1. Schedule 1 - Principal Lease Details: Key details of the underlying lease agreement being guaranteed

2. Schedule 2 - Guaranteed Obligations: Detailed list of the specific obligations being guaranteed

3. Schedule 3 - Guarantor Details: Full details of guarantor(s) including contact information and corporate information if applicable

4. Schedule 4 - Form of Demand: Template for making a formal demand under the guarantee

5. Appendix A - Copy of Lease: Annexed copy of the principal lease agreement

6. Appendix B - Legal Capacity Documents: Copies of any relevant corporate authorizations or powers of attorney

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions



































Clauses



























Relevant Industries

Commercial Real Estate

Retail

Industrial

Office Space

Residential Property

Shopping Centers

Warehousing

Manufacturing

Healthcare Facilities

Hospitality

Education Facilities

Relevant Teams

Legal

Property Management

Real Estate

Compliance

Risk Management

Asset Management

Facilities Management

Commercial Operations

Contract Administration

Property Services

Relevant Roles

Property Manager

Leasing Manager

Real Estate Agent

Legal Counsel

Contract Manager

Commercial Property Officer

Lease Administrator

Risk Manager

Compliance Officer

Asset Manager

Facilities Manager

Property Portfolio Manager

Real Estate Director

Chief Legal Officer

Commercial Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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