A Guarantee Rental Agreement is essential when additional security is required for a rental arrangement, particularly common in student lettings, first-time renters, or high-value properties. The agreement, governed by English and Welsh law, provides landlords with additional security by having a third party guarantee the tenant's obligations. This document typically includes detailed provisions about the scope of the guarantee, enforcement mechanisms, and the guarantor's responsibilities. It's particularly relevant when tenants have limited rental history or where the rental value warrants additional security measures.
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1. Parties: Identifies and defines the Landlord, Tenant, and Guarantor
2. Background: Context of the guarantee and reference to the main tenancy agreement
3. Definitions: Key terms used throughout the agreement
4. Guarantee Obligations: Core obligations of the guarantor including payment obligations and performance guarantees
5. Duration of Guarantee: Term of the guarantee and conditions for termination
6. Enforcement: Circumstances and process for enforcing the guarantee
1. Indemnity: Additional protection for landlord, typically used in high-value properties or commercial contexts
2. Joint and Several Liability: Required when multiple guarantors are involved in the guarantee arrangement
3. Change of Parties: Provisions for assignment or transfer of rights under the guarantee
1. Schedule 1 - Property Details: Details of the property being rented including address and key features
2. Schedule 2 - Main Tenancy Agreement: Copy or key terms of the underlying tenancy agreement being guaranteed
3. Schedule 3 - Guarantor's Statement of Assets: Optional schedule for high-value rentals showing guarantor's financial position and ability to meet obligations
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