The Deed of Guarantee for Tenancy is a crucial document in Australian property leasing arrangements where additional security is required beyond the standard tenant commitments. It is commonly used in situations involving student tenants, first-time renters, tenants with limited rental history, or commercial leases where the tenant company has limited trading history. The document creates a legally binding commitment from a guarantor (often a parent, relative, or corporate entity) to assume responsibility for the tenant's obligations if they default. This deed must be carefully drafted to comply with Australian state-specific tenancy laws, property legislation, and consumer protection regulations. It typically includes detailed provisions about the scope of the guarantee, the guarantor's obligations, enforcement mechanisms, and any limitations or conditions on the guarantee's duration or extent.
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1. Parties: Identifies the guarantor, landlord/lessor, and tenant with their full legal names and addresses
2. Background: Explains the context of the guarantee, including reference to the primary tenancy agreement
3. Definitions and Interpretation: Defines key terms used in the deed and explains how the document should be interpreted
4. Guarantee and Indemnity: Core section detailing the guarantor's obligations and the extent of the guarantee
5. Scope of Guarantee: Specifies exactly what obligations are being guaranteed (rent, damages, other costs)
6. Duration of Guarantee: Specifies how long the guarantee remains in effect and any termination conditions
7. Guarantor's Obligations: Details specific duties and responsibilities of the guarantor
8. Landlord's Rights: Outlines the landlord's rights in relation to enforcing the guarantee
9. Enforcement: Describes the process for enforcing the guarantee if the tenant defaults
10. Execution: Formal requirements for signing the deed, including witness requirements
1. Joint and Several Liability: Required when there are multiple guarantors who will be jointly and severally liable
2. Limitation of Liability: Used when the guarantee is to be limited to a specific amount or specific obligations
3. Corporate Guarantor Provisions: Required when the guarantor is a company rather than an individual
4. Guarantee Release Conditions: Details specific conditions under which the guarantor may be released from obligations
5. Assignment and Transfer: Required if the guarantee can be assigned or transferred to other parties
6. Variation of Tenancy: Addresses whether changes to the underlying tenancy affect the guarantee
7. Privacy and Confidentiality: Optional provisions regarding handling of personal information
8. Dispute Resolution: Optional procedures for resolving disputes related to the guarantee
1. Schedule 1 - Tenancy Agreement Details: Copy or key details of the underlying tenancy agreement being guaranteed
2. Schedule 2 - Guaranteed Obligations: Itemized list of specific obligations covered by the guarantee
3. Schedule 3 - Guarantor Information: Detailed information about the guarantor(s) including contact details and identification
4. Appendix A - Guarantee Limit Details: If applicable, specific details about any limitations on the guarantee amount
5. Appendix B - Required Notices: Any statutory notices or warnings required to be given to guarantors
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