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Commercial Lease Guarantor Form Template for Canada

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Key Requirements PROMPT example:

Commercial Lease Guarantor Form

"I need a Commercial Lease Guarantor Form for a retail space in Ontario where a parent company will act as corporate guarantor for its subsidiary's lease obligations, with the guarantee limited to a maximum liability of CAD 500,000."

Document background
The Commercial Lease Guarantor Form is a critical document in Canadian commercial lease transactions, typically used when a landlord requires additional security beyond the tenant's covenant. This requirement often arises when dealing with new businesses, companies with limited operating history, or situations where the tenant's financial strength alone is insufficient to secure the lease obligations. The form establishes a legally binding guarantee that can be enforced under provincial commercial tenancy laws and includes specific provisions detailing the scope of guaranteed obligations, enforcement mechanisms, and the guarantor's rights and responsibilities. The document is essential for risk management in commercial real estate transactions and must comply with provincial statute of frauds requirements, ensuring all guarantee obligations are clearly documented in writing.
Suggested Sections

1. Parties: Identifies the Landlord (Beneficiary of Guarantee), Tenant (Principal Debtor), and Guarantor(s)

2. Background: Recitals explaining the context of the lease agreement and the requirement for the guarantee

3. Definitions: Key terms used throughout the guarantee agreement, including 'Lease', 'Guaranteed Obligations', and 'Event of Default'

4. Guarantee and Indemnity: Core provision where guarantor agrees to guarantee the tenant's obligations and provide indemnity to the landlord

5. Scope of Guarantee: Detailed description of what obligations are covered by the guarantee

6. Duration of Guarantee: Term of the guarantee and any conditions for its termination

7. Nature of Guarantor's Liability: Establishes whether liability is joint and several, primary or secondary

8. Guarantor's Warranties and Representations: Guarantor's confirmations regarding their capacity and authority to provide the guarantee

9. Preservation of Rights: Landlord's rights to enforce the guarantee under various circumstances

10. Costs and Expenses: Responsibility for legal and enforcement costs

11. Notices: Process and requirements for formal communications between parties

12. Governing Law and Jurisdiction: Specifies applicable law and courts having jurisdiction

Optional Sections

1. Limited Guarantee Provisions: Used when the guarantee is limited to a specific amount or time period

2. Multiple Guarantors: Additional provisions needed when there is more than one guarantor

3. Corporate Guarantor Provisions: Special provisions required when the guarantor is a corporation rather than an individual

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

5. Security Provisions: Used when additional security is provided alongside the guarantee

6. Step-In Rights: Provisions allowing guarantor to take over lease if tenant defaults

7. Financial Reporting Requirements: Periodic financial disclosure requirements for guarantor

8. Subordination Provisions: Used when guarantor's claims need to be subordinated to landlord's rights

Suggested Schedules

1. Schedule A - The Lease: Copy or summary of the principal lease agreement being guaranteed

2. Schedule B - Guaranteed Obligations: Detailed list of specific obligations covered by the guarantee

3. Schedule C - Guarantor Information Form: Standard form collecting guarantor's personal or corporate information

4. Schedule D - Certificate of Independent Legal Advice: Confirmation that guarantor received independent legal advice

5. Schedule E - Financial Statement Template: Format for any required periodic financial reporting by guarantor

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Commercial Real Estate

Retail

Office Space

Industrial and Warehousing

Healthcare Facilities

Hospitality

Professional Services

Manufacturing

Technology

Financial Services

Relevant Teams

Legal

Real Estate

Property Management

Risk Management

Finance

Operations

Corporate Services

Facilities

Business Development

Asset Management

Lease Administration

Relevant Roles

Property Manager

Commercial Real Estate Lawyer

Leasing Manager

Real Estate Director

Risk Manager

Chief Financial Officer

Commercial Lease Administrator

Asset Manager

Legal Counsel

Commercial Property Director

Tenant Coordinator

Business Development Manager

Corporate Real Estate Manager

Facilities Manager

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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