Document background
The Guarantee of Lease Form is a crucial document in Philippine real estate transactions where additional security is required for lease agreements. It is commonly used when landlords seek extra protection beyond the standard lease provisions, particularly for high-value commercial properties or when dealing with tenants who have limited credit history or financial standing. The document, governed by Philippine law, specifically the Civil Code provisions on guarantees and leases, establishes a three-party relationship between the lessor, lessee, and guarantor. It's essential in situations where the landlord requires assurance of rent payment and other lease obligations, making it particularly relevant in commercial leasing, retail spaces, and significant residential properties. The guarantee typically covers all obligations under the lease, including rent payments, maintenance obligations, and potential damages, and remains effective throughout the lease term unless otherwise specified.
