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Guaranty Of Lease Agreement Template for Canada

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Key Requirements PROMPT example:

Guaranty Of Lease Agreement

"I need a Guaranty of Lease Agreement where a parent company guarantees the lease obligations of its subsidiary for a commercial office space in Toronto, with the guarantee limited to a maximum of CAD 500,000 and expiring on March 1, 2025."

Document background
The Guaranty of Lease Agreement is essential in Canadian real estate transactions where additional security is required for lease obligations. This document is commonly used when a tenant's financial standing alone may not satisfy the landlord's requirements, or in commercial situations where parent companies guarantee subsidiaries' lease obligations. The agreement details the guarantor's obligations, the extent of liability, and enforcement mechanisms, all while ensuring compliance with relevant provincial legislation. A properly structured Guaranty of Lease Agreement provides landlords with security while enabling tenants to secure desired properties, making it a crucial tool in both commercial and residential leasing.
Suggested Sections

1. Parties: Identifies all parties to the guarantee agreement: the Guarantor(s), Landlord (as beneficiary of the guarantee), and reference to the Tenant

2. Background: Recitals explaining the context of the guarantee, including reference to the main lease agreement and the relationship between the parties

3. Definitions: Defines key terms used throughout the agreement, including 'Lease', 'Guaranteed Obligations', 'Property', and other relevant terms

4. Guarantee and Indemnity: Core section detailing the scope of the guarantee and indemnification provided by the guarantor

5. Extent of Guarantor's Liability: Specifies the limitations, if any, on the guarantor's liability and whether it is capped or unlimited

6. Duration of Guarantee: Specifies how long the guarantee remains in effect and any conditions for termination

7. Nature of Guarantee: Establishes whether the guarantee is continuing, irrevocable, and/or unconditional

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

9. Landlord's Rights: Outlines the rights of the landlord in enforcing the guarantee

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

11. Preservation of Rights: Confirms that the landlord's rights under the guarantee are preserved despite various circumstances

12. Notices: Specifies how and where formal notices must be delivered

13. Governing Law and Jurisdiction: Specifies that Canadian law governs and identifies the relevant jurisdiction

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Joint and Several Liability: Required when there are multiple guarantors to establish their joint and several liability

2. Security: Used when the guarantee is secured by specific assets or collateral

3. Guarantee Limitations: Include when there are specific limitations on the guarantee amount or scope

4. Step-In Rights: Optional section granting the guarantor rights to take over the lease in certain circumstances

5. Assignment and Transfer: Include when the guarantee may need to be assigned or transferred

6. Costs and Expenses: Optional section detailing responsibility for costs related to preparing or enforcing the guarantee

7. Financial Reporting: Include when guarantor must provide periodic financial information

8. Release Conditions: Used when specific conditions for releasing the guarantor are negotiated

Suggested Schedules

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

2. Schedule B - The Property: Detailed description of the leased property

3. Schedule C - Guaranteed Obligations: Itemized list of specific obligations being guaranteed

4. Schedule D - Guarantor Information: Detailed information about the guarantor(s) including contact details and addresses for service

5. Schedule E - Certificate of Independent Legal Advice: If required, confirmation that the guarantor received independent legal advice

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

Relevant legal definitions



































Clauses






























Relevant Industries

Real Estate

Commercial Property

Residential Property

Retail

Office Space

Industrial

Hospitality

Healthcare

Education

Professional Services

Relevant Teams

Legal

Real Estate

Property Management

Risk Management

Finance

Compliance

Operations

Corporate Services

Facilities Management

Asset Management

Relevant Roles

Property Manager

Real Estate Manager

Legal Counsel

Corporate Lawyer

Leasing Manager

Asset Manager

Risk Manager

Commercial Property Director

Tenant Relations Manager

Chief Financial Officer

Facilities Manager

Real Estate Director

Contracts Administrator

Compliance Officer

Company Secretary

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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