Document background
The Guarantee Lease Agreement is a critical document in Canadian property transactions where additional security is required beyond the tenant's primary commitment. This document is commonly used when a landlord requires extra assurance of lease performance, such as in cases involving new businesses, students, or tenants with limited credit history. The agreement creates a legally binding commitment from a guarantor (often a parent company, business owner, or family member) to fulfill the tenant's obligations if they default. The document must comply with provincial property laws and the Statute of Frauds requirements for written guarantees. It typically includes detailed provisions about the scope of guaranteed obligations, enforcement mechanisms, and the duration of the guarantee, while also addressing specific provincial requirements for both commercial and residential contexts.
