Document background
The Personal Guarantee Lease Agreement is a specialized legal instrument used in South African property law when additional security is required beyond a standard lease agreement. This document is typically employed when a landlord requires extra assurance regarding a tenant's ability to meet their rental obligations, particularly in high-value properties or when dealing with tenants who may have limited credit history or financial credentials. The agreement combines standard lease provisions governed by the Rental Housing Act with personal guarantee elements, creating a three-way legal relationship between landlord, tenant, and guarantor. It's especially relevant in both residential and commercial contexts where the guarantee of a third party (often a parent company, director, or family member) is required to secure the lease. The document must comply with South African consumer protection legislation and property law while clearly establishing the scope and limitations of the guarantor's liability.
