The Guarantee Lease Agreement is essential in Malaysian property transactions where additional security is required beyond standard lease arrangements. This document is typically used when a landlord seeks extra assurance of rent payment and lease compliance, particularly in commercial leases or when dealing with new businesses or tenants with limited credit history. The agreement incorporates both standard lease provisions under Malaysian law and specific guarantee clauses where a third party (guarantor) commits to fulfilling the tenant's obligations if they default. It combines elements of the National Land Code 1965, Contracts Act 1950, and relevant property legislation, making it a robust instrument for property management and risk mitigation. The document is structured to protect all parties' interests while ensuring enforceability under Malaysian jurisdiction.
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1. Parties: Identifies the landlord, tenant, and guarantor with their full legal names and addresses
2. Background: Outlines the context of the agreement, including the property details and the purpose of the guarantee
3. Definitions: Defines key terms used throughout the agreement
4. Demise: Details of the property being leased and the term of the lease
5. Rent and Payment Terms: Specifies rent amount, payment schedule, and method of payment
6. Tenant's Covenants: Lists all obligations and promises made by the tenant
7. Landlord's Covenants: Lists all obligations and promises made by the landlord
8. Guarantee Provisions: Details the scope and extent of the guarantee, including the guarantor's obligations
9. Default and Remedies: Specifies what constitutes default and the available remedies
10. Termination: Conditions and procedures for ending the lease and guarantee
11. Notices: Specifies how formal communications between parties should be made
12. Governing Law: Confirms Malaysian law as governing law and jurisdiction
13. Execution: Signature blocks for all parties
1. Security Deposit: Include when additional security deposit is required beyond the guarantee
2. Insurance: Include when specific insurance requirements are imposed on tenant or guarantor
3. Assignment and Subletting: Include when transfer rights need to be specifically addressed
4. Maintenance and Repairs: Include when specific maintenance obligations need detailed explanation
5. Utilities and Services: Include when responsibility for utilities needs to be clearly defined
6. Force Majeure: Include when protection against unforeseen events is required
7. Option to Renew: Include when lease renewal terms are offered
8. Break Clause: Include when early termination options are provided
1. Schedule 1 - Property Description: Detailed description of the leased property including floor plans and boundaries
2. Schedule 2 - Rent Schedule: Detailed breakdown of rent payments, including any scheduled increases
3. Schedule 3 - Permitted Use: Specific details about how the property may be used
4. Schedule 4 - Inventory: List of fixtures, fittings, and furniture included in the lease
5. Schedule 5 - Service Charges: Breakdown of any additional service charges or maintenance fees
6. Appendix A - Form of Notice: Template for formal notices between parties
7. Appendix B - Rules and Regulations: Building or property rules and regulations
8. Appendix C - Guarantee Enforcement Procedures: Detailed procedures for enforcing the guarantee
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