The Guarantor Lease Agreement is essential in situations where additional security is required for a lease arrangement in Indonesia. This document is commonly used when a tenant's financial credentials alone are insufficient to secure a lease, such as in cases involving students, first-time renters, or businesses with limited trading history. The agreement must comply with Indonesian Civil Code requirements and local property regulations, establishing clear terms for the guarantor's obligations while protecting all parties' interests. The document typically includes detailed provisions about the scope of the guarantee, trigger events for guarantor liability, and the process for claiming against the guarantee. It's particularly important that the agreement clearly defines the guarantor's obligations and limits while ensuring enforceability under Indonesian law.
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1. Parties: Identifies and provides full details of the Landlord, Tenant, and Guarantor
2. Background: Explains the context of the agreement, including the intention to lease the property and the requirement for a guarantor
3. Definitions: Defines key terms used throughout the agreement
4. Property Details: Specific description and details of the leased property
5. Lease Terms: Core terms of the lease including duration, rent amount, and payment terms
6. Guarantor's Obligations: Details the extent and nature of the guarantor's responsibilities and financial obligations
7. Scope of Guarantee: Specifies exactly what obligations are covered by the guarantee
8. Duration of Guarantee: Defines how long the guarantee remains in effect and any conditions for termination
9. Payment Terms: Specifies when and how the guarantor must make payments if the tenant defaults
10. Default and Remedies: Outlines what constitutes default and the landlord's rights against both tenant and guarantor
11. Notices: Specifies how and where formal notices must be delivered to all parties
12. Governing Law: Confirms Indonesian law applies and specifies jurisdiction for disputes
13. Execution: Signature blocks for all parties and witnessing requirements
1. Foreign Currency Provisions: Required if rent is paid in non-Indonesian Rupiah, addressing exchange rate mechanisms
2. Multiple Guarantors: Required when there is more than one guarantor, defining joint and several liability
3. Corporate Guarantor Provisions: Required when the guarantor is a company rather than an individual
4. Property Management: Required when a property management company is involved in managing the lease
5. Guarantee Limit: Optional section capping the guarantor's maximum liability
6. Step-In Rights: Optional provisions allowing guarantor to take over lease instead of paying compensation
7. Insurance Requirements: Details specific insurance requirements if required from guarantor
1. Schedule 1 - Property Description: Detailed description of the property including floor plans and photographs
2. Schedule 2 - Rent Schedule: Detailed breakdown of rent payments, including any scheduled increases
3. Schedule 3 - Guarantor's Financial Statement: Financial information provided by guarantor to demonstrate capacity
4. Schedule 4 - Condition Report: Detailed report of property condition at lease commencement
5. Schedule 5 - Permitted Use: Specific details about how the property may be used
6. Appendix A - Required Documents: Copies of identification documents for all parties
7. Appendix B - Special Conditions: Any special or additional conditions applicable to this specific agreement
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