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Guarantee Rental Agreement
"I need a Guarantee Rental Agreement for our Saudi subsidiary acting as corporate guarantor for multiple retail tenants across our shopping mall properties, with the guarantee period starting January 2025 and including step-in rights for the guarantor."
1. Parties: Identification of all parties: Landlord, Tenant, and Guarantor, including full legal names and contact details
2. Background: Context of the agreement, reference to the main rental agreement, and purpose of the guarantee
3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Property', 'Rental Agreement', etc.
4. Guarantee: Core terms of the guarantee, including scope, duration, and limitations
5. Guarantor's Obligations: Detailed description of what the guarantor is responsible for, including payment obligations and performance guarantees
6. Nature of Guarantee: Specifies whether the guarantee is continuing, irrevocable, and/or unconditional
7. Duration: Term of the guarantee, including start date and conditions for termination
8. Payment Terms: Specifics about when and how the guarantor must fulfill financial obligations
9. Enforcement: Rights of the landlord to enforce the guarantee and procedures for doing so
10. Notices: Requirements and procedures for formal communications between parties
11. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes
1. Multiple Guarantors: Required when there is more than one guarantor, defining joint and several liability
2. Corporate Guarantor Provisions: Required when the guarantor is a company, including corporate authority and representations
3. Islamic Finance Compliance: Detailed provisions ensuring compliance with Shariah principles, particularly relevant for institutional arrangements
4. Currency Provisions: Required when rental payments are in a currency other than Saudi Riyals
5. Step-In Rights: Optional provisions allowing the guarantor to take over the lease in certain circumstances
6. Guarantee Limit: When the guarantee is capped at a specific amount rather than being unlimited
1. Schedule 1 - The Property: Detailed description of the rental property, including address and any specific inclusions/exclusions
2. Schedule 2 - The Rental Agreement: Copy or key terms of the underlying rental agreement being guaranteed
3. Schedule 3 - Guaranteed Obligations: Itemized list of all obligations covered by the guarantee
4. Schedule 4 - Form of Demand: Template for making a demand under the guarantee
5. Appendix A - Required Documents: List of documents required from the guarantor, such as ID documents or corporate authorizations
6. Appendix B - Payment Schedule: If applicable, schedule of guaranteed rental payments and due dates
Authors
Real Estate
Commercial Property
Residential Property
Retail
Industrial
Hospitality
Office Space
Shopping Centers
Warehousing
Educational Institutions
Healthcare Facilities
Banking and Financial Services
Legal
Real Estate
Compliance
Risk Management
Property Management
Facilities Management
Contract Administration
Finance
Asset Management
Operations
Real Estate Manager
Property Manager
Legal Counsel
Corporate Lawyer
Leasing Manager
Tenant Relations Manager
Risk Manager
Commercial Director
Facilities Manager
Asset Manager
Compliance Officer
Contract Administrator
Real Estate Director
Chief Financial Officer
Property Investment Manager
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