A Lease Guaranty Agreement is commonly used in Singapore's property market when additional security is required for a lease arrangement. This typically occurs when a tenant's financial standing alone is insufficient to satisfy the landlord's requirements, or when dealing with new businesses or overseas entities. The agreement details the guarantor's obligations, including payment of rent, compliance with lease terms, and compensation for damages. Under Singapore law, the guarantee must be in writing and clearly specify the guaranteed obligations. This document provides landlords with additional security while facilitating lease arrangements that might otherwise not be possible.
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1. Parties: Identifies the guarantor, landlord, and tenant with full legal names and addresses
2. Background: Describes the underlying lease and circumstances requiring the guarantee
3. Definitions: Defines key terms used throughout the agreement
4. Guarantee and Indemnity: Core obligations of the guarantor
5. Duration of Guarantee: Period of effectiveness of the guarantee
6. Guarantor's Obligations: Detailed list of specific obligations and responsibilities
7. Enforcement: Mechanisms for enforcing the guarantee
8. Execution: Signature blocks and execution formalities
1. Assignment: Rights to assign the guarantee - include when assignment rights are required
2. Joint and Several Liability: Multiple guarantors' liability provisions - include when there are multiple guarantors
3. Costs and Expenses: Allocation of legal and enforcement costs - include when specific cost arrangements are needed
1. Schedule 1 - Principal Lease: Copy or details of the underlying lease agreement
2. Schedule 2 - Guaranteed Obligations: Detailed list of obligations being guaranteed
3. Appendix A - Property Details: Details of the leased property
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