Document background
The Personal Guarantee Form For Commercial Lease is a crucial document in Australian commercial property transactions, typically required when a landlord seeks additional security beyond the tenant's covenant. This document is particularly common when leasing to new businesses, companies with limited trading history, or where the tenant's financial strength is uncertain. The guarantee creates a secondary obligation that provides landlords with recourse against the guarantor (often company directors or related entities) if the tenant defaults on their lease obligations. The form must comply with Australian federal and state-specific legislation, including the Property Law Act, relevant Retail Leases Acts, and common law principles governing guarantees. It includes detailed provisions covering the scope of guaranteed obligations, enforcement mechanisms, and the guarantor's liability, while also incorporating necessary consumer protection elements required under Australian law.
