Guarantor Rental Agreement Template for Canada

The Guarantor Rental Agreement is a crucial document in Canadian residential and commercial leasing, commonly used when landlords require additional security beyond the primary tenant's commitment. This typically occurs in situations involving student rentals, first-time renters, individuals with limited credit history, or high-value commercial leases. The agreement operates under provincial residential tenancy laws and must comply with local contract law requirements. It establishes the guarantor's obligations, including their responsibility to pay rent and cover any damages if the tenant defaults, the duration of the guarantee, and enforcement mechanisms. The document is essential for risk management in rental properties and provides landlords with legally enforceable recourse against a financially stable third party.

1. Parties: Identifies and provides full legal names and addresses of all parties: Landlord, Tenant(s), and Guarantor(s)

2. Background: Explains the context of the agreement, including reference to the main tenancy agreement and the requirement for a guarantor

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Rental Agreement', 'Premises', etc.

4. Scope of Guarantee: Clearly defines what obligations the guarantor is guaranteeing, including rent, damages, and other tenant obligations

5. Duration of Guarantee: Specifies how long the guarantee will remain in effect, including any provisions for termination

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

7. Landlord's Rights: Outlines the landlord's rights in relation to enforcing the guarantee and seeking payment from the guarantor

8. Independent Obligation: Confirms that the guarantor's obligations are independent of the tenant's and survive tenant bankruptcy or similar events

9. Enforcement: Describes the process for enforcing the guarantee, including notice requirements and payment timelines

10. Governing Law: Specifies that the agreement is governed by Canadian law and the applicable provincial jurisdiction

11. Execution: Formal signing section with space for signatures, dates, and witness details