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Guarantee Rental Agreement

Guarantee Rental Agreement Template for Malaysia

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Key Requirements PROMPT example:

Guarantee Rental Agreement

"I need a Guarantee Rental Agreement for a commercial property in Kuala Lumpur, where a parent company will act as guarantor for its subsidiary's 3-year lease starting March 2025, with the guarantee covering both rent and maintenance charges."

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Document background
The Guarantee Rental Agreement is a crucial document in Malaysian property transactions, commonly used when additional security is required beyond the standard tenant commitments. This document is particularly relevant when letting properties to students, first-time renters, or tenants with limited credit history, as well as in high-value commercial leases. The agreement aligns with Malaysian legal requirements, including the Contracts Act 1950 and the National Land Code 1965, and can be used for both residential and commercial properties. The document typically includes comprehensive details about the guaranteed obligations, enforcement mechanisms, and the specific circumstances under which the guarantee can be called upon. A Guarantee Rental Agreement provides landlords with an additional layer of security while clearly defining the guarantor's obligations and limitations.
Suggested Sections

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

2. Background: Explains the context of the agreement, including reference to the main tenancy agreement

3. Definitions: Defines key terms used throughout the agreement

4. Guarantee and Indemnity: Core section detailing the guarantee obligations and scope of the guarantee

5. Duration of Guarantee: Specifies the time period for which the guarantee remains valid

6. Guarantor's Obligations: Lists specific obligations and responsibilities of the guarantor

7. Enforcement of Guarantee: Explains when and how the guarantee can be enforced

8. Landlord's Rights: Outlines the rights of the landlord in relation to the guarantee

9. Payments: Details payment obligations and mechanisms

10. Notices: Specifies how formal notices should be given between parties

11. Governing Law and Jurisdiction: Confirms Malaysian law applies and specifies jurisdiction for disputes

Optional Sections

1. Multiple Guarantors: Required when there is more than one guarantor, defining joint and several liability

2. Corporate Guarantor Provisions: Required when the guarantor is a company rather than an individual

3. Change of Parties: Needed when assignment or transfer of rights might be permitted

4. Guarantee Limit: Optional section to cap the guarantor's liability to a specific amount

5. Step-In Rights: Optional provisions allowing guarantor to take over tenancy in case of tenant default

6. Early Termination Rights: Optional provisions for early release of guarantee under specific circumstances

Suggested Schedules

1. Schedule 1 - Principal Tenancy Agreement: Copy or key terms of the main tenancy agreement being guaranteed

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

3. Schedule 3 - Guarantor's Details: Full details of guarantor(s) including address and contact information

4. Schedule 4 - Property Details: Full description of the rental property

5. Appendix A - Form of Demand: Template for making formal demands under the guarantee

6. Appendix B - Guarantor's Statement of Net Worth: Financial statement from guarantor (if required)

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

Real Estate

Property Management

Commercial Property

Residential Property

Corporate Housing

Student Housing

Retail

Industrial

Hospitality

Office Space

Relevant Teams

Legal

Real Estate

Property Management

Leasing

Risk Management

Compliance

Operations

Commercial

Facilities

Administration

Relevant Roles

Property Manager

Real Estate Agent

Legal Counsel

Tenancy Manager

Asset Manager

Facilities Manager

Leasing Manager

Contract Administrator

Risk Manager

Property Administrator

Commercial Director

Housing Officer

Compliance Officer

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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