Document background
The Guarantee For Rental Agreement is a crucial document in Nigerian real estate transactions, providing landlords with additional security for their rental properties. This document becomes necessary when a landlord requires extra assurance beyond the tenant's own covenant, typically in situations involving new businesses, students, individuals with limited credit history, or high-value commercial leases. The guarantee agreement works in conjunction with the main rental agreement, creating a legally binding commitment from a third party (the guarantor) to step in and fulfill the tenant's obligations if they fail to do so. Under Nigerian law, this document must comply with both federal and state-specific legislation regarding property law, contract formation, and enforcement procedures. The agreement should be carefully drafted to ensure it's enforceable and clearly defines the scope of the guarantor's liability, including whether it covers just rent or extends to other obligations such as property maintenance and damages.
