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Lease Guaranty Template for United Arab Emirates

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Key Requirements PROMPT example:

Lease Guaranty

"I need a Lease Guaranty agreement for our Dubai office space where our parent company will guarantee the lease obligations of our local subsidiary, with the lease term starting March 1, 2025, and the guarantee covering both rent and service charges."

Document background
The Lease Guaranty is a critical document in the UAE's real estate sector, commonly used to provide additional security for landlords in both commercial and residential leasing arrangements. It becomes particularly relevant in high-value lease transactions, commercial property leases, or situations where the tenant's financial standing requires additional support. The document must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and relevant emirate-specific regulations, particularly in Dubai and Abu Dhabi where specialized rental dispute resolution mechanisms exist. The Lease Guaranty typically includes detailed provisions about the guaranteed obligations, enforcement procedures, and the scope of the guarantor's liability, while ensuring alignment with local legal requirements and market practices.
Suggested Sections

1. Parties: Identification of the Guarantor, Landlord (beneficiary of the guarantee), and Tenant (primary obligor)

2. Background: Context of the guarantee, reference to the primary lease agreement, and purpose of the guarantee

3. Definitions: Key terms including 'Guaranteed Obligations', 'Lease Agreement', 'Property', and 'Guarantee Period'

4. Guarantee and Indemnity: Core guarantee obligations, scope of the guarantee, and indemnification provisions

5. Extent of Guarantee: Specific details of what is being guaranteed (rent, service charges, damages, etc.)

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

7. Guarantor's Obligations: Specific undertakings and continuing obligations of the guarantor

8. Preservation of Rights: Landlord's rights to enforce the guarantee and circumstances that don't affect guarantee validity

9. Demand and Payment: Process for making demands under the guarantee and payment requirements

10. Representations and Warranties: Guarantor's confirmations regarding capacity and authority to provide the guarantee

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction of courts/dispute resolution centers

Optional Sections

1. Corporate Authority: Required when guarantor is a corporate entity, including corporate authorization details

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

3. Islamic Finance Compliance: Required when the guarantee needs to be Sharia-compliant

4. Assignment and Transfer: Optional section dealing with ability to transfer or assign guarantee rights

5. Currency Provisions: Required for international leases or when rent is paid in non-UAE currency

6. Step-In Rights: Optional section for commercial leases allowing guarantor to take over lease

7. Limited Liability Provisions: Optional section capping guarantee liability (if negotiated)

8. Bank Guarantee Requirements: Required when guarantee is backed by or includes a bank guarantee

Suggested Schedules

1. Schedule 1 - Primary Lease Details: Copy or key details of the underlying lease agreement

2. Schedule 2 - Guaranteed Obligations: Detailed breakdown of all obligations covered by the guarantee

3. Schedule 3 - Property Details: Description and details of the leased property

4. Schedule 4 - Form of Demand: Template for making demands under the guarantee

5. Appendix A - Corporate Authorization: Corporate resolutions and authorizations (if corporate guarantor)

6. Appendix B - Bank Guarantee Format: Standard format for any required bank guarantee

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses

























Relevant Industries

Real Estate

Banking & Financial Services

Retail

Hospitality

Commercial Office Space

Industrial & Warehousing

Residential Property

Shopping Malls & Retail Centers

Healthcare Facilities

Educational Institutions

Relevant Teams

Legal

Real Estate

Property Management

Risk Management

Finance

Operations

Compliance

Facilities Management

Treasury

Commercial

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Leasing Manager

Asset Manager

Facilities Manager

Risk Manager

Commercial Director

Chief Financial Officer

Compliance Officer

Real Estate Director

Operations Manager

Contract Manager

Treasury 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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