Commercial Lease Guaranty Template for Australia

The Commercial Lease Guaranty is a crucial security document used in Australian commercial property transactions to provide landlords with additional protection against tenant default. It is typically required when leasing commercial property to companies with limited trading history, subsidiaries of foreign companies, or where the tenant's financial strength requires additional security. The document establishes the guarantor's obligations to fulfill the tenant's responsibilities under the lease, including payment of rent, outgoings, and compliance with lease terms. This guarantee remains a common requirement in Australian commercial leasing transactions, particularly in high-value or long-term lease arrangements, and must comply with both Commonwealth and state-specific legislation regarding property law, contracts, and consumer protection.

1. Parties: Identifies all parties including the landlord (beneficiary of the guarantee), guarantor(s), and reference to the tenant

2. Background: Explains the context of the guarantee, references the lease agreement, and states the purpose of the guarantee

3. Definitions and Interpretation: Defines key terms used in the document and sets out interpretation rules

4. Guarantee and Indemnity: Core section establishing the guarantee obligations and indemnity provisions

5. Extent of Guarantee: Details the scope and limitations of the guarantee obligations

6. Nature of Guarantee: Specifies that the guarantee is continuing, unconditional and irrevocable

7. Guarantor Acknowledgments: Contains guarantor's confirmations and acknowledgments regarding their obligations

8. Payment Obligations: Specifies when and how payments must be made under the guarantee

9. Preservation of Rights: Outlines the landlord's rights and their preservation regardless of other events

10. Release and Discharge: Conditions under which the guarantor may be released from obligations

11. Costs and Expenses: Addresses liability for costs related to the guarantee

12. Notices: Specifies how formal notices must be given between parties

13. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, etc.

14. Execution: Formal signing section with necessary attestation requirements