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Tenancy Agreement With Guarantor Template for India

A comprehensive legal document governed by Indian law that establishes a tenancy relationship between a landlord and tenant, with the additional security of a guarantor who assumes responsibility for the tenant's obligations. This agreement is structured in accordance with the Transfer of Property Act 1882 and relevant state-specific rental laws, incorporating all essential terms including rent, duration, maintenance responsibilities, and specific guarantor obligations. The document provides robust protection for all parties while ensuring compliance with local registration and stamp duty requirements.

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What is a Tenancy Agreement With Guarantor?

The Tenancy Agreement With Guarantor is essential in situations where additional security is required beyond a standard lease agreement in India. This document is commonly used for high-value commercial leases, residential properties in premium locations, or when dealing with tenants who may have limited credit history or are new to the market (such as students or startup businesses). It incorporates all standard lease provisions while adding comprehensive guarantor clauses that comply with the Indian Contract Act 1872. The agreement needs to be executed on appropriate stamp paper and registered when exceeding 11 months, as per the Registration Act 1908. It provides detailed terms covering rent, deposits, maintenance, utilities, guarantor's obligations, and termination conditions, while ensuring compliance with state-specific rental laws and regulations.

What sections should be included in a Tenancy Agreement With Guarantor?

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

2. Background: Brief context explaining the intent to create a tenancy and the Guarantor's willingness to guarantee the Tenant's obligations

3. Definitions: Defines key terms used throughout the agreement including Property, Term, Rent, Security Deposit, etc.

4. Demise: The formal grant of tenancy, specifying the property being let and the term of the tenancy

5. Rent and Deposits: Details of rent amount, payment schedule, security deposit, advance rent, and payment methods

6. Tenant Covenants: Tenant's obligations including maintenance, permitted use, restrictions, utilities, etc.

7. Landlord Covenants: Landlord's obligations including quiet enjoyment, maintenance of structure, insurance, etc.

8. Guarantor Obligations: Scope of guarantee, payment obligations, duration of guarantee, and circumstances triggering guarantor's liability

9. Term and Termination: Duration of tenancy, notice periods, renewal terms, and termination circumstances

10. Property Maintenance and Repairs: Responsibilities for maintaining the property, process for repairs, and cost allocation

11. Default and Remedies: Consequences of breach, enforcement against tenant and guarantor, and available remedies

12. General Provisions: Standard clauses including notices, entire agreement, governing law, etc.

What sections are optional to include in a Tenancy Agreement With Guarantor?

1. Lock-in Period: Include when parties agree to a minimum guaranteed period of tenancy

2. Fit-out Provisions: Include for commercial properties requiring tenant modifications

3. Service Charges: Include for properties in managed complexes with additional service charges

4. Sub-letting Provisions: Include if sub-letting is to be permitted under specific conditions

5. Property Management: Include when a property manager is appointed to handle day-to-day matters

6. Force Majeure: Include specific provisions for unforeseen circumstances affecting tenancy obligations

7. Green Lease Provisions: Include for properties with specific environmental or sustainability requirements

What schedules should be included in a Tenancy Agreement With Guarantor?

1. Property Description: Detailed description of the property including address, measurements, and included fixtures/fittings

2. Inventory: List of furnishings and their condition at the start of tenancy

3. Rent Schedule: Detailed breakdown of rent payments, including any planned increases

4. House Rules: Specific rules applicable to the property or building complex

5. Maintenance Schedule: Detailed breakdown of maintenance responsibilities between parties

6. Guarantor Financial Information: Details of Guarantor's financial status and proof of ability to meet obligations

7. Handover Form: Template for recording property condition at start and end of tenancy

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Genie AI

Document Type

Guarantor Agreement

Sector

Banking

Cost

Free to use

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