Guarantee Of Lease Form Template for Indonesia

The Guarantee of Lease Form is essential in Indonesian property transactions where additional security is required for lease agreements. It is commonly used when landlords seek extra assurance beyond the tenant's commitments, particularly in high-value commercial leases or when dealing with new or unestablished tenants. The document, governed by Indonesian law, specifically the Civil Code (KUHPerdata) and property regulations, establishes a three-party relationship between lessor, lessee, and guarantor. It outlines the guarantor's obligations to step in if the tenant defaults, the conditions for enforcement, and the extent of the guarantee. This form is crucial for risk management in property leasing and provides clarity on the guarantor's obligations and the lessor's rights of enforcement.

1. Parties: Identifies the Lessor (property owner), Lessee (tenant), and Guarantor, including their full legal names, addresses, and any relevant registration numbers

2. Background: Brief context explaining the lease agreement being guaranteed and the purpose of this guarantee

3. Definitions: Defines key terms used throughout the document, including 'Lease Agreement', 'Guaranteed Obligations', and 'Event of Default'

4. Scope of Guarantee: Specifies exactly what obligations of the Lessee are being guaranteed, including rent payments, property maintenance, and other lease obligations

5. Guarantor's Obligations: Details the specific commitments and responsibilities of the guarantor, including payment obligations and timing

6. Duration of Guarantee: Specifies the term of the guarantee, typically aligned with the lease period plus any extension provisions

7. Enforcement: Explains when and how the guarantee can be enforced, including notice requirements and payment procedures

8. Representations and Warranties: Guarantor's confirmations regarding their capacity and authority to provide the guarantee

9. Indemnification: Guarantor's commitment to indemnify the Lessor against losses related to Lessee's default

10. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies jurisdiction for dispute resolution

11. Notices: Specifies how and where formal notices should be delivered to all parties

12. Execution: Signature blocks and execution requirements for all parties