The Personal Guarantee Lease Agreement is a specialized legal instrument used in Malaysian property transactions where additional security is required beyond a standard lease agreement. This document is typically employed when leasing high-value commercial properties, when dealing with new businesses as tenants, or in situations where the landlord requires extra assurance of rent payment and lease obligation fulfillment. The agreement is structured to comply with Malaysian property and contract law, incorporating both lease provisions and personal guarantee elements. It provides comprehensive coverage of lease terms while establishing legally binding obligations for a guarantor to step in if the tenant defaults. The document is particularly relevant in today's market where landlords seek to minimize risk while maintaining property investment returns.
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1. Parties: Identifies and defines the Landlord, Tenant, and Guarantor with their full legal names and addresses
2. Background: Explains the context of the agreement, including the Landlord's ownership of the property and the Tenant's desire to lease it
3. Definitions: Defines key terms used throughout the agreement including Property, Term, Rent, Security Deposit, and Guarantee
4. Demise: Sets out the formal grant of lease from Landlord to Tenant
5. Term and Possession: Specifies the duration of the lease and conditions for possession
6. Rent and Payment Terms: Details the rent amount, payment schedule, and method of payment
7. Security Deposit: Specifies the security deposit amount, terms of holding, and conditions for refund
8. Tenant's Covenants: Lists all obligations and responsibilities of the Tenant
9. Landlord's Covenants: Lists all obligations and responsibilities of the Landlord
10. Guarantee Provisions: Details the scope and extent of the Guarantor's obligations
11. Insurance: Specifies required insurance coverage and responsibilities
12. Maintenance and Repairs: Defines responsibilities for property maintenance and repairs
13. Default and Remedies: Outlines events of default and available remedies for all parties
14. Termination: Specifies conditions and procedures for termination of the agreement
15. Notices: Details how formal notices should be given between parties
16. Governing Law: Confirms Malaysian law as governing law and jurisdiction
1. Utilities and Services: Include when responsibilities for utilities need to be explicitly defined
2. Renovation and Alterations: Include when the tenant may need to make changes to the property
3. Assignment and Subletting: Include when these rights need to be explicitly granted or prohibited
4. Option to Renew: Include when offering the tenant an option to extend the lease
5. Break Clause: Include when early termination options are to be provided
6. Multiple Guarantors: Include when there is more than one guarantor to define joint and several liability
7. Dispute Resolution: Include when specific dispute resolution procedures are required
8. Force Majeure: Include when protection against unforeseen circumstances is needed
1. Schedule 1 - Property Description: Detailed description of the leased property including address, boundaries, and included fixtures
2. Schedule 2 - Rent Schedule: Detailed breakdown of rent payments, including any scheduled increases
3. Schedule 3 - Inventory List: List of furniture, fixtures, and equipment included in the lease
4. Schedule 4 - Condition Report: Detailed report of the property's condition at the start of the lease
5. Schedule 5 - House Rules: If applicable, rules and regulations for the use of the property
6. Appendix A - Guarantor's Statement of Assets: Declaration of the guarantor's financial position
7. Appendix B - Required Insurance Coverage: Detailed specifications of required insurance policies
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