The Rent Guarantee Agreement is a crucial document in the Philippine property rental market, designed to provide security to landlords while facilitating rental arrangements for tenants. It becomes necessary when a landlord requires additional assurance beyond the standard security deposit, particularly in cases involving new tenants, students, or businesses without extensive credit history. The agreement, governed by Philippine law, specifically the Civil Code and Rent Control Act, establishes a legally binding commitment from a guarantor to fulfill the tenant's obligations in case of default. This document typically includes detailed provisions about the scope of the guarantee, payment terms, enforcement mechanisms, and the specific circumstances under which the guarantee can be called upon. It's particularly relevant in both residential and commercial contexts, especially in high-value rental arrangements or when dealing with corporate tenants.
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1. Parties: Identifies and provides full details of the Landlord, Tenant, and Guarantor
2. Background: Explains the context of the guarantee, referencing the underlying rental agreement and the need for a guarantee
3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Rental Agreement', 'Term', and 'Default'
4. Scope of Guarantee: Details the exact obligations being guaranteed, including rent, utilities, damages, and other potential liabilities
5. Duration of Guarantee: Specifies the time period for which the guarantee remains valid
6. Guarantor's Obligations: Lists specific responsibilities and commitments of the guarantor, including payment terms and conditions
7. Nature of Guarantee: Specifies whether the guarantee is continuing, irrevocable, and/or unconditional
8. Landlord's Rights and Remedies: Outlines the actions the landlord can take to enforce the guarantee
9. Notice Requirements: Specifies how and when notices must be given between parties
10. Representations and Warranties: Contains statements of fact and promises made by the guarantor regarding their capacity and authority
11. Governing Law and Jurisdiction: Specifies Philippine law as governing law and defines jurisdiction for disputes
12. Execution: Signature blocks and notarization requirements
1. Multiple Guarantors: Required when there is more than one guarantor, defining joint and several liability
2. Corporate Guarantee Provisions: Required when the guarantor is a corporation, including board resolutions and authority
3. Guarantee Limit: Optional section capping the guarantor's maximum liability
4. Early Termination Rights: Includes conditions under which the guarantee can be terminated early
5. Assignment and Transfer: Required if the agreement allows for assignment of the guarantee rights
6. Currency Provisions: Required for international guarantees or when dealing with foreign currency rentals
7. Step-In Rights: Optional provisions allowing guarantor to take over tenant's position in certain circumstances
1. Schedule 1 - Rental Agreement: Copy or key terms of the underlying rental agreement being guaranteed
2. Schedule 2 - Guaranteed Obligations: Detailed breakdown of all obligations covered by the guarantee
3. Schedule 3 - Property Details: Description and details of the rental property
4. Schedule 4 - Guarantor's Financial Statement: Recent financial information of the guarantor (if required)
5. Appendix A - Form of Demand: Template for making formal demands under the guarantee
6. Appendix B - Corporate Authority Documents: Required corporate resolutions and authorizations if guarantor is a corporation
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