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Guarantor Rental Agreement Template for Malaysia

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Key Requirements PROMPT example:

Guarantor Rental Agreement

"I need a Guarantor Rental Agreement for my commercial property in Kuala Lumpur, where the tenant is a startup company and their parent company will act as guarantor for a 3-year lease starting March 2025, with monthly rental of RM15,000."

Document background
The Guarantor Rental Agreement is commonly used in Malaysian property rentals where additional security is required beyond the standard tenant obligations. This typically occurs in situations involving students, first-time renters, or tenants with limited credit history. The document establishes a three-way relationship between landlord, tenant, and guarantor, ensuring that the landlord has recourse to the guarantor if the tenant fails to meet their obligations. Under Malaysian law, this agreement must comply with the Contracts Act 1950 and should be properly stamped under the Stamp Act 1949 to be admissible in court. The agreement includes comprehensive details about the guaranteed obligations, enforcement mechanisms, and the specific circumstances under which the guarantee can be called upon.
Suggested Sections

1. Parties: Identifies and provides full details of the Landlord, Tenant, and Guarantor including names, identification numbers, and addresses

2. Background: Sets out the context of the agreement, referring to the main tenancy agreement and the need for a guarantee

3. Definitions: Defines key terms used throughout the agreement including 'Guaranteed Obligations', 'Tenancy Agreement', and 'Rental Period'

4. Scope of Guarantee: Details the extent of the guarantor's obligations and liabilities under the agreement

5. Guarantor's Obligations: Specifies the primary obligations of the guarantor including payment obligations and performance guarantees

6. Duration of Guarantee: Specifies the time period for which the guarantee remains valid and any conditions for extension

7. Landlord's Rights and Remedies: Outlines the landlord's rights to enforce the guarantee and available remedies in case of default

8. Continuing Security: Establishes that the guarantee remains in force despite any changes to the main tenancy agreement

9. Indemnity: Guarantor's commitment to indemnify the landlord against losses due to tenant's default

10. Notices: Specifies how and where formal notices should be served between parties

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

12. Execution: Formal signing section with space for signatures, witnesses, and dates

Optional Sections

1. Joint and Several Liability: Required when there are multiple guarantors, establishing that each guarantor is liable for the full amount

2. Guarantee Limit: Optional cap on the guarantor's liability, if agreed between parties

3. Early Termination Rights: Include when parties agree to specific conditions under which the guarantee can be terminated early

4. Assignment and Transfer: Include when the agreement needs to address whether rights can be assigned to other parties

5. Death or Bankruptcy Provisions: Include specific provisions for what happens to the guarantee in case of guarantor's death or bankruptcy

6. Variation of Tenancy: Include when the main tenancy agreement might be varied without affecting the guarantee

Suggested Schedules

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

2. Schedule 2 - Guaranteed Amounts: Detailed breakdown of the rental amounts, deposits, and other financial obligations being guaranteed

3. Schedule 3 - Property Details: Full description and details of the rental property

4. Schedule 4 - Guarantor's Statement of Assets: Optional declaration of guarantor's financial position and assets

5. Appendix A - Form of Notice: Standard templates for notices to be used under the agreement

6. Appendix B - Guarantor's Proof of Identity: Copies of guarantor's identification documents and proof of address

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




























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Relevant Industries

Real Estate

Property Management

Residential Property

Commercial Property

Student Housing

Corporate Housing

Legal Services

Property Investment

Asset Management

Relevant Teams

Legal

Property Management

Real Estate Operations

Compliance

Contract Administration

Facilities Management

Tenant Relations

Risk Management

Asset Operations

Relevant Roles

Property Manager

Real Estate Agent

Legal Counsel

Tenancy Manager

Asset Manager

Leasing Manager

Property Administrator

Compliance Officer

Contract Manager

Housing Officer

Facilities Manager

Property Operations 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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