The Guarantee Rental Agreement is a crucial document in Philippine property leasing arrangements where additional security is required beyond the standard rental agreement. This document is typically used when a landlord requires extra assurance of rent payment and other tenant obligations, particularly in cases involving new businesses, students, or tenants with limited credit history. The agreement, governed by Philippine law, establishes a legally binding commitment from a third party (guarantor) to fulfill the tenant's obligations if the tenant defaults. It includes specific provisions aligned with the Civil Code of the Philippines and relevant property laws, detailing the scope of guarantee, enforcement mechanisms, and the rights and obligations of all parties involved. This type of agreement is especially relevant in both commercial and residential leasing contexts where risk mitigation is paramount.
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1. Parties: Identifies and provides full details of the Landlord, Tenant, and Guarantor
2. Background: Explains the context of the agreement, including the primary rental agreement details and the need for a guarantee
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Guarantee: Details the extent of the guarantor's obligations and liabilities
5. Duration of Guarantee: Specifies the time period for which the guarantee remains valid
6. Guarantor's Obligations: Lists specific obligations and responsibilities of the guarantor
7. Landlord's Rights and Remedies: Outlines the landlord's rights in enforcing the guarantee
8. Payment Terms: Specifies the mechanism and timing of payments under the guarantee
9. Enforcement: Details how and when the guarantee can be enforced
10. Notices: Specifies how formal communications between parties should be made
11. Governing Law: Confirms Philippine law governs the agreement and jurisdiction details
12. Execution: Signature blocks and execution formalities
1. Multiple Guarantors: Include when there is more than one guarantor, defining joint and several liability
2. Corporate Guarantee Provisions: Include when the guarantor is a corporation, including necessary corporate authorizations
3. Guarantee Limit: Include when the guarantee is capped at a specific amount
4. Property Usage Restrictions: Include when specific restrictions on property use need to be guaranteed
5. Early Termination Rights: Include when specific conditions for early termination of the guarantee are needed
6. Dispute Resolution: Include when specific arbitration or mediation procedures are preferred
7. Assignment and Transfer: Include when rights to assign or transfer the guarantee need to be addressed
1. Schedule 1 - Primary Lease Agreement: Copy or key terms of the main lease agreement being guaranteed
2. Schedule 2 - Guaranteed Obligations: Detailed list of all obligations covered by the guarantee
3. Schedule 3 - Property Details: Detailed description of the rental property
4. Schedule 4 - Guarantor's Financial Statement: Current financial information of the guarantor
5. Appendix A - Payment Schedule: Schedule of rent payments and other financial obligations
6. Appendix B - Guarantor's ID and Documentation: Copies of required identification and supporting documents
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