Document background
The Guarantee Rental Agreement is a crucial document in Philippine property leasing arrangements where additional security is required beyond the standard rental agreement. This document is typically used when a landlord requires extra assurance of rent payment and other tenant obligations, particularly in cases involving new businesses, students, or tenants with limited credit history. The agreement, governed by Philippine law, establishes a legally binding commitment from a third party (guarantor) to fulfill the tenant's obligations if the tenant defaults. It includes specific provisions aligned with the Civil Code of the Philippines and relevant property laws, detailing the scope of guarantee, enforcement mechanisms, and the rights and obligations of all parties involved. This type of agreement is especially relevant in both commercial and residential leasing contexts where risk mitigation is paramount.
