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A Guarantee Deed (Garantieversprechen in Swiss-German) is a legally binding document where someone promises to cover another person's financial obligations or performance duties. In Swiss law, it differs from a regular surety by offering stronger protection to the beneficiary, as the guarantor can't use most standard defenses to avoid payment.

Swiss businesses often use these deeds in construction projects, real estate transactions, and commercial loans. The guarantor must sign the deed before a notary public (Notar), and Swiss law requires the maximum liability amount to be clearly stated. Unlike sureties, guarantee deeds remain valid even if the main debt becomes unenforceable, making them a preferred security instrument for many Swiss banks and large corporations.

Consider using a Guarantee Deed when you need robust financial protection beyond what a standard surety offers under Swiss law. This document proves especially valuable in high-stakes business deals, like securing multi-million franc construction projects or backing major commercial property transactions.

The deed works particularly well for Swiss banks requiring additional security from corporate borrowers, or for suppliers needing guaranteed payment from new business partners. It's also commonly used in joint venture agreements where parent companies guarantee their subsidiaries' performance. The key timing is before finalizing any major transaction where standard contractual promises alone don't provide enough security.

• Payment Guarantees: Commonly used in Swiss banking, these guarantee a specific financial obligation, with clear payment triggers and amounts
• Performance Guarantees: Popular in construction and manufacturing, ensuring project completion or service delivery standards
• Parent Company Guarantees: Used when Swiss subsidiaries need financial backing from their parent organizations
• Rental Guarantees: Protect landlords by guaranteeing tenant obligations, often required for commercial leases
• Trade Guarantees: Support import-export transactions, particularly common in Switzerland's international trade sector

• Banks and Financial Institutions: Often require Guarantee Deeds as security for loans or credit facilities
• Corporate Guarantors: Usually parent companies or wealthy individuals who provide the financial backing
• Swiss Notaries: Must authenticate these deeds to make them legally valid
• Legal Counsel: Draft and review the guarantees to ensure compliance with Swiss obligation law
• Business Owners: Commonly sign as personal guarantors for their company's obligations
• Commercial Landlords: Request guarantees from tenants or their backers for lease agreements

• Basic Details: Gather full legal names and addresses of guarantor, beneficiary, and primary debtor
• Obligation Scope: Define exact financial amounts and duties being guaranteed
• Time Limits: Specify guarantee duration and any triggering events for expiration
• Supporting Documents: Collect proof of guarantor's financial capacity and authority to sign
• Notary Appointment: Schedule authentication with a Swiss notary public
• Template Selection: Use our platform's Swiss-compliant guarantee deed generator for accurate drafting
• Internal Review: Check all terms align with intended business arrangement before notarization

• Identification Section: Full legal names and addresses of all parties, including guarantor, beneficiary, and primary debtor
• Guarantee Amount: Maximum liability limit clearly stated in Swiss francs
• Scope Definition: Precise description of guaranteed obligations and performance requirements
• Duration Clause: Clear start date and termination conditions
• Payment Terms: Specific triggers for guarantee activation and payment procedures
• Notarization Block: Space for official authentication as required by Swiss law
• Governing Law: Express reference to Swiss Code of Obligations
• Signatures: Designated spaces for all parties and witnesses

A Guarantee Deed differs significantly from a Guarantee Agreement in several key aspects under Swiss law. While both documents involve financial commitments, their legal structure and enforcement mechanisms vary considerably.

• Legal Formality: Guarantee Deeds require notarization in Switzerland, while Guarantee Agreements often don't need this extra step
• Independence: A Guarantee Deed creates a primary obligation independent of the underlying debt, whereas a Guarantee Agreement remains tied to the main contract's validity
• Defenses Available: Guarantors under a Deed have fewer defenses available compared to those under an Agreement
• Enforcement Process: Deeds typically offer faster enforcement options with fewer procedural hurdles
• Risk Level: Guarantee Deeds generally pose higher risks for guarantors but provide stronger protection for beneficiaries