Guarantee Rental Agreement

Guarantee Rental Agreement Template for Denmark

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Document background

The Guarantee Rental Agreement is essential in Danish rental arrangements where additional financial security is required beyond standard deposits. This document is typically used when a landlord requires extra assurance of rent payment and property protection, or when a tenant needs a third party to guarantee their rental obligations. The agreement complies with Danish rental laws and regulations, particularly the Lease Act (Lejeloven), and can be used for both residential and commercial properties. It includes specific provisions for guarantee amount, claim procedures, and termination conditions, ensuring all parties understand their rights and obligations. The Guarantee Rental Agreement is particularly relevant in situations involving new tenants without rental history, commercial leases, or high-value properties where substantial financial security is needed.

Suggested Sections

1. Parties: Identification of the Guarantor, Landlord (beneficiary), and Tenant (primary debtor), including full legal names, addresses, and registration numbers if applicable

2. Background: Context of the guarantee, reference to the main rental agreement, and purpose of the guarantee

3. Definitions: Definitions of key terms used throughout the agreement

4. Guarantee Amount: Specification of the guaranteed sum and any conditions for adjustment

5. Scope of Guarantee: Detailed description of what the guarantee covers, including rent, utilities, damage, and other obligations

6. Duration: Term of the guarantee, including start date and conditions for termination

7. Demands Under Guarantee: Process and conditions for making claims under the guarantee

8. Payment Terms: Timeline and method for payment upon valid demand

9. Guarantor's Rights and Obligations: Detailed listing of the guarantor's responsibilities and rights under the agreement

10. Notices: Requirements for formal communications between parties

11. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction for disputes

12. Signatures: Execution blocks for all parties

Optional Sections

1. Multiple Guarantors: Section addressing joint and several liability when more than one guarantor is involved

2. Counter-Indemnity: Provisions for tenant's obligation to reimburse guarantor for any payments made under the guarantee

3. Property Maintenance Obligations: Specific provisions related to guaranteeing property maintenance obligations

4. Guarantee Reduction Provisions: Terms for potential reduction of guarantee amount over time based on tenant performance

5. Assignment and Transfer: Provisions governing the transfer of guarantee rights or obligations

6. Force Majeure: Provisions addressing extraordinary circumstances affecting guarantee obligations

7. Bank Guarantee Option: Alternative provisions for using a bank guarantee instead of personal guarantee

Suggested Schedules

1. Schedule 1 - Primary Rental Agreement: Copy or key terms of the underlying rental agreement

2. Schedule 2 - Property Details: Detailed description of the rental property and its condition

3. Schedule 3 - Payment Schedule: Breakdown of rent and other guaranteed payments

4. Schedule 4 - Claim Procedures: Detailed procedures for making and processing guarantee claims

5. Appendix A - Guarantor's Financial Statement: Financial information provided by guarantor (if required)

6. Appendix B - Property Inspection Report: Initial condition report of the property

7. Appendix C - Required Notices Format: Templates for formal notices under the guarantee

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Guarantee Rental Agreement Template for Denmark

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