Document background
The Lease Guaranty Form is an essential document in Canadian real estate transactions where additional security is required beyond the tenant's own covenant. This document is commonly used when leasing to new businesses, companies with limited operating history, or individuals with insufficient credit history. The guarantee may be provided by a parent company, business owner, or other financially capable third party. The form outlines the guarantor's obligations, including payment of rent, compliance with lease terms, and other tenant responsibilities in case of default. It must comply with both federal and provincial legislation, including the Statute of Frauds requirements for written guarantees and provincial property laws. The document typically includes provisions for enforcement, duration of the guarantee, and any limitations on the guarantor's liability.
