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Guarantor Lease Agreement

Guarantor Lease Agreement Template for Malaysia

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Key Requirements PROMPT example:

Guarantor Lease Agreement

"I need a Guarantor Lease Agreement for a high-value commercial property in Kuala Lumpur, where a parent company will act as guarantor for its subsidiary's lease obligations, with specific provisions for step-in rights if the subsidiary defaults."

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Document background
The Guarantor Lease Agreement is a crucial document in Malaysian property transactions where additional security is required beyond the tenant's own covenant. It is commonly used in commercial leases, high-value residential properties, or situations where the tenant has limited financial history or stability. The agreement provides landlords with additional security by having a third party guarantee the tenant's obligations under the lease. This document must comply with Malaysian legislation, including the Contracts Act 1950, National Land Code 1965, and Civil Law Act 1956. It typically includes detailed provisions about the scope of the guarantee, circumstances triggering the guarantor's obligations, enforcement mechanisms, and the duration of the guarantee. The agreement is particularly relevant in today's market where landlords seek additional protection against tenant default while maintaining flexibility in their leasing arrangements.
Suggested Sections

1. Parties: Identification of the Landlord, Tenant, and Guarantor including full legal names, addresses, and registration numbers if companies

2. Background: Context of the lease agreement and the requirement for a guarantor

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

4. Guarantee and Indemnity: Core section detailing the guarantor's obligations and extent of liability

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

6. Guarantor's Covenants: Specific promises and obligations of the guarantor

7. Landlord's Rights and Remedies: Actions the landlord can take to enforce the guarantee

8. Payment Obligations: Details of the guaranteed payments including rent, deposits, and other charges

9. Continuing Security: Provisions ensuring the guarantee remains effective despite changes to the lease

10. Independence of Guarantor's Obligations: Clarification that the guarantor's obligations are independent of the tenant's

11. Notices: Requirements for serving notices under the agreement

12. Governing Law and Jurisdiction: Confirmation of Malaysian law applying and jurisdiction for disputes

Optional Sections

1. Joint and Several Liability: Required when there are multiple guarantors

2. Corporate Guarantor Provisions: Additional provisions required when the guarantor is a company

3. Step-in Rights: Optional provisions allowing the guarantor to take over the lease in case of tenant default

4. Limitation of Liability: Optional caps or limitations on the guarantor's liability

5. Assignment and Transfer: Required when the agreement needs to address potential transfer of the guarantee

6. Foreign Guarantor Provisions: Required when the guarantor is based outside Malaysia

Suggested Schedules

1. Schedule 1 - The Property: Detailed description of the leased property including address and specifications

2. Schedule 2 - The Lease: Summary or copy of the main lease terms being guaranteed

3. Schedule 3 - Guaranteed Obligations: Itemized list of all obligations covered by the guarantee

4. Appendix A - Form of Demand: Template for making formal demands under the guarantee

5. Appendix B - Corporate Authority Documents: Required corporate authorizations if guarantor is a company

6. Appendix C - Guarantor's Financial Statement: Recent financial information of the guarantor (if required)

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

alex.den.21@genieai.co
Relevant legal definitions
































Clauses

























Relevant Industries

Real Estate

Property Management

Commercial Property

Residential Property

Retail

Office Space

Industrial Property

Hospitality

Student Housing

Shopping Centers

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Risk Management

Operations

Facilities

Contract Administration

Asset Management

Relevant Roles

Property Manager

Legal Counsel

Real Estate Manager

Leasing Manager

Asset Manager

Property Administrator

Contract Manager

Risk Manager

Compliance Officer

Facilities Manager

Real Estate Director

Commercial Lease Administrator

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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