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Guarantee Rental Agreement Template for Germany

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Key Requirements PROMPT example:

Guarantee Rental Agreement

"I need a Guarantee Rental Agreement under German law for a commercial property in Berlin, where a parent company will act as guarantor for its subsidiary's office lease starting March 2025, with a guarantee cap of €500,000 and quarterly financial reporting requirements."

Document background
The Guarantee Rental Agreement is a crucial document in German property rental transactions, particularly when landlords seek additional security beyond standard tenant deposits. This agreement is commonly used in situations where tenants may have limited credit history, are students, or in high-value commercial leases. The document, governed by German law, establishes a three-way relationship where a guarantor (often a parent, relative, or corporate entity) agrees to assume responsibility for the tenant's obligations under the rental agreement. It must comply with strict formal requirements under the German Civil Code (BGB) and includes specific provisions regarding the scope of guaranteed obligations, enforcement mechanisms, and liability limits. When the guarantor is an individual, additional consumer protection provisions may apply, requiring specific warnings and acknowledgments to be included in the agreement.
Suggested Sections

1. Parties: Identification of all parties: Landlord (creditor), Tenant (primary debtor), and Guarantor

2. Background: Context of the rental agreement and the reason for the guarantee

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations' and 'Property'

4. Scope of Guarantee: Precise definition of the obligations covered by the guarantee, including rent, utilities, and potential damages

5. Duration of Guarantee: Term of the guarantee and any conditions for its termination

6. Guarantor's Obligations: Detailed description of the guarantor's responsibilities and the circumstances triggering payment obligations

7. Maximum Liability: Clear statement of the maximum amount the guarantor might be liable for

8. Payment Terms: Process and timing for making payments under the guarantee

9. Enforcement: Procedures for enforcing the guarantee, including notice requirements

10. Representations and Warranties: Guarantor's confirmations regarding their financial capacity and understanding of obligations

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

Optional Sections

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

2. Release Conditions: Specific conditions under which the guarantor may be released from obligations

3. Bank Guarantee Alternative: Option for replacing personal guarantee with a bank guarantee

4. Guarantee Limitation Period: Specific time limitations on guarantee claims, if different from statutory provisions

5. Property Sale Provisions: Specific provisions regarding guarantee obligations in case of property sale

6. Consumer Protection Declarations: Required when guarantor is acting as a consumer, including specific warnings and acknowledgments

7. Financial Reporting: Requirements for guarantor to provide periodic financial information, typically used for commercial guarantees

Suggested Schedules

1. Schedule 1: Property Details: Detailed description of the rental property

2. Schedule 2: Primary Rental Agreement: Copy or key terms of the underlying rental agreement

3. Schedule 3: Guaranteed Amounts: Detailed breakdown of the guaranteed payment obligations

4. Schedule 4: Form of Demand: Template for making a demand under the guarantee

5. Appendix A: Guarantor's Financial Statement: Current financial information of the guarantor

6. Appendix B: Identity Documents: Copies of identification documents for all parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Property Management

Residential Housing

Commercial Property

Student Housing

Retail Property

Office Space Rental

Industrial Property

Mixed-Use Development

Property Investment

Relevant Teams

Legal

Real Estate

Property Management

Risk Management

Contracts Administration

Compliance

Finance

Operations

Asset Management

Tenant Relations

Relevant Roles

Property Manager

Real Estate Manager

Legal Counsel

Contracts Manager

Risk Manager

Leasing Manager

Asset Manager

Property Administrator

Real Estate Attorney

Compliance Officer

Financial Controller

Housing Officer

Tenant Relations Manager

Commercial Property 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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