Document background
The Personal Guarantee Lease Agreement is commonly used in the UAE real estate market where landlords seek additional security for their property leases, particularly in high-value commercial or residential tenancies. This document becomes crucial when tenants may have limited trading history or when additional security is required beyond standard lease deposits. The agreement, governed by UAE law, establishes a three-way relationship between landlord, tenant, and guarantor, where the guarantor commits to fulfilling the tenant's obligations in case of default. It typically includes detailed terms about the guarantee's scope, enforcement mechanisms, and the specific obligations being guaranteed, all structured to comply with UAE Civil Code requirements and relevant emirate-specific property laws. This type of agreement is particularly important in Dubai and Abu Dhabi's competitive real estate markets, where it helps facilitate leasing transactions while providing security for landlords.
