Document background
The Guarantor On Lease Agreement is a crucial document in Canadian property leasing transactions where additional security is required beyond the tenant's own covenant. This document is commonly used in situations where a tenant may have limited credit history, insufficient income, or when the landlord requires extra assurance of payment and performance under the lease. The agreement is particularly common in commercial leases, student rentals, and residential leases where the tenant's financial credentials alone may not satisfy the landlord's requirements. The document must comply with provincial residential tenancy legislation and contract law principles, and typically includes detailed provisions about the guarantee's scope, duration, and enforcement mechanisms. It's essential to note that the specific requirements and enforceability conditions may vary by province, and the agreement should be customized accordingly. The document serves as a risk management tool for landlords while providing clear guidelines for guarantors regarding their obligations and potential liabilities.
