Document background
The Commercial Lease Guarantor Form is an essential document in Australian commercial property transactions, typically required when a landlord seeks additional security beyond the tenant's covenant. This document is particularly relevant when leasing to new businesses, companies with limited trading history, or where the tenant's financial strength requires additional support. The form establishes legally binding obligations under Australian law, detailing the guarantor's commitments to fulfill the tenant's obligations if they default. It includes specific provisions addressing guarantee scope, duration, enforcement mechanisms, and compliance with relevant state and federal legislation. The document is designed to protect the landlord's interests while clearly defining the guarantor's obligations and potential liabilities. Common scenarios for its use include retail leases, office spaces, and industrial property leases where the tenant operates through a company structure with directors or parent companies acting as guarantors.
