A Guarantee Agreement is a binding contract between a Lender and a third party called a Guarantor. Guarantors are often required when applying for loans, cars, or properties as extra security for the Lender. The agreement ensures that the Lender will continue to receive the required payments should the Borrower or Tenant be unable to pay. In this case, the Guarantor would then be liable for these payments.
Depending on what the guarantee agreement is for, this template can be adapted. If you rent a property, you can remove references to the ‘Borrower,’ ‘Lender,’ and ‘Lease Agreement.’ If you are leasing anything else (for example, a car), you can remove references to the ‘Tenant,’ ‘Landlord,’ and ‘Tenancy Agreement.’
This guarantee agreement has been created on [Document.CreatedDate] between the following parties:
[Landlord.FirstName] [Landlord.LastName] / [Landlord.Company]
Hereby known as 'the Landlord' / 'the Lender'
Hereby known as 'the Tenant' / 'the Borrower,' and
Hereby known as 'the Guarantor.'
1. The Guarantor will guarantee the Tenant/Borrower in line with the terms and conditions outlined in the Tenancy/Lease Agreement (see attached).
Don’t forget to attach the Agreement this Guarantee refers to.
2. The Guarantor ensures the Tenant/Borrower remains compliant under the obligations of their Tenancy/Lease Agreement with the Landlord/Lender. This includes funding any compensation to be paid to the Landlord/Lender for loss, damage, or renting arrears should the Tenant/Borrower be in breach of their Agreement.
3. This agreement will continue to be in place during the initial Tenancy/Lease Agreement, as well as any renewals or extensions to the fixed term agreed between the Tenant/Borrower and Landlord/Lender.
4. Both the Guarantor and the Tenant/Borrower will be responsible for complying with the terms of conditions of the Tenancy/Lease Agreement. Should the Landlord/Lender seek compensation for loss or damages, this can be against either the Tenant/Borrower, Guarantor, or both parties together.
5. This deed between the Guarantor and the Landlord/Lender will not be cleared or waived for any reason and will remain in place during the whole period of the agreed Tenancy/Lease. The Guarantor will not be released from their liabilities unless the Landlord/Lender provides written notification.
6. This Guarantee Agreement is binding. It shall continue beyond the Guarantor's death or bankruptcy so long as the Tenancy/Lease Agreement is in place.
7. The Guarantor will remain liable for the property/vehicle and obligations stated in the Tenancy/Lease Agreement should the Tenant/Borrower surrender any part of the property/vehicle with written consent from the Landlord/Lender.
8. Should the Landlord/Lender incur any fees and expenses while enforcing this guarantee, the Guarantor will be liable for these costs, regardless of whether court proceedings take place.
9. For multiple Tenants/Borrowers, should one Tenant/Borrower surrender their interest in the property/vehicle, the Guarantee will remain in place as long as at least one Tenant/Borrower remains bound by their original Agreement.
Signed as a deed and delivered by or on behalf of the Landlord/Lender:
Signed as a deed and delivered by: