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Guarantee For Rental Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Guarantee For Rental Agreement

"I need a Guarantee For Rental Agreement where ABC Corporation (parent company) guarantees the rental obligations of ABC Trading LLC (tenant) for a commercial warehouse in Dubai, with a guarantee amount of AED 500,000 for a lease starting March 1, 2025."

Document background
The Guarantee For Rental Agreement is a crucial document in the UAE's real estate sector, used to provide security for rental obligations in both commercial and residential contexts. It becomes necessary when a landlord requires additional security beyond the standard rental deposit, particularly in high-value commercial leases or when dealing with new tenants without an established rental history. The document must comply with UAE Civil Code provisions regarding guarantees (Articles 1057-1093) and relevant Emirate-specific rental laws. It typically includes detailed provisions about the guarantee's scope, duration, enforcement mechanisms, and the specific obligations being secured. This type of guarantee is commonly used in the UAE market where corporate tenants may have parent company guarantees, or where individuals might require employer or bank guarantees to secure their rental obligations.
Suggested Sections

1. Parties: Identifies and provides full details of the Guarantor, Landlord (Beneficiary), and Tenant (Primary Obligor)

2. Background: Describes the underlying rental agreement and the context for the guarantee

3. Definitions: Defines key terms used throughout the guarantee agreement

4. Guarantee and Indemnity: Core section detailing the scope and nature of the guarantee obligations

5. Limit of Liability: Specifies the maximum amount of the guarantor's liability and any limitations

6. Duration of Guarantee: Specifies the term of the guarantee and conditions for termination

7. Payment Terms: Details when and how payments under the guarantee must be made

8. Guarantor's Representations and Warranties: Statements confirming the guarantor's capacity and authority to provide the guarantee

9. Enforcement: Procedures for claiming under the guarantee and enforcement mechanisms

10. Notices: Communication requirements and contact details for all parties

11. Governing Law and Jurisdiction: Confirms UAE law governance and jurisdiction for disputes

Optional Sections

1. Corporate Authority: Required only when the guarantor is a corporate entity, detailing corporate approvals

2. Multiple Guarantors: Include when there is more than one guarantor, defining joint and several liability

3. Assignment: Include if assignment of the guarantee rights is to be permitted

4. Bank Guarantee Provisions: Required when the guarantee is provided by a bank rather than an individual or corporate entity

5. Foreign Law Interface: Include when any party is based outside the UAE or foreign law elements are involved

Suggested Schedules

1. Schedule 1 - The Rental Agreement: Copy or key details of the underlying rental agreement being guaranteed

2. Schedule 2 - Property Details: Detailed description of the rental property covered by the guarantee

3. Schedule 3 - Payment Schedule: Details of the rental payment obligations being guaranteed

4. Schedule 4 - Guarantee Amount Calculation: Breakdown of how the guarantee amount is calculated

5. Appendix A - Required Notices Format: Template formats for various notices under the guarantee

6. Appendix B - Corporate Authorizations: Copies of relevant corporate authorizations (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


























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Relevant Industries

Real Estate

Banking & Financial Services

Corporate Services

Residential Property

Commercial Property

Retail

Hospitality

Industrial & Warehousing

Professional Services

Education

Relevant Teams

Legal

Real Estate

Property Management

Corporate Services

Facilities Management

Risk & Compliance

Finance

Treasury

Housing

Tenant Relations

Commercial Leasing

Corporate Real Estate

Relevant Roles

Legal Counsel

Real Estate Manager

Property Manager

Leasing Manager

Corporate Services Manager

Facilities Manager

Risk Manager

Compliance Officer

Real Estate Director

Treasury Manager

Financial Controller

Housing Manager

Tenant Relations Manager

Commercial Lease Administrator

Corporate Real Estate Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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