The Personal Guarantee Rental Agreement is a crucial document in property leasing transactions across England and Wales, commonly used when landlords require additional security beyond the tenant's covenant. This agreement is particularly relevant for student lettings, commercial leases, or situations where tenants have limited credit history or financial standing. The document outlines the guarantor's obligations, the extent of their liability, and the circumstances under which the guarantee can be enforced. It provides essential protection for landlords while ensuring clear terms for all parties involved.
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1. Parties: Identifies the guarantor, landlord, and tenant
2. Background: Explains the context of the guarantee and references the main lease
3. Definitions: Defines key terms used throughout the agreement
4. Guarantee and Indemnity: Core obligations of the guarantor
5. Duration of Guarantee: Period for which the guarantee remains valid
6. Guarantor's Obligations: Specific duties and responsibilities of the guarantor
7. Enforcement: Conditions under which the guarantee can be enforced
1. Joint and Several Liability: Required when multiple guarantors are involved
2. Assignment and Transfer: Provisions for transferring guarantee obligations
3. Step-in Rights: Allows guarantor to take over tenant's lease
1. Schedule 1 - Main Lease Details: Copy or summary of the main lease agreement
2. Schedule 2 - Guaranteed Obligations: Detailed list of obligations being guaranteed
3. Appendix A - Financial Information: Guarantor's financial details and status
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