Rent Guarantee Agreement Template for Switzerland

The Rent Guarantee Agreement is a crucial document in Swiss rental transactions, providing landlords with security while offering tenants a more capital-efficient alternative to cash deposits. Used in both residential and commercial contexts, this agreement establishes a guarantee mechanism where a financial institution (typically a bank or insurance company) agrees to pay the landlord up to a specified amount if the tenant defaults on their obligations. The document must comply with Swiss law requirements, particularly the Swiss Code of Obligations' provisions on guarantees and rental security deposits. For residential properties, the guarantee amount is typically capped at three months' rent. The agreement outlines the conditions for calling on the guarantee, payment procedures, and release mechanisms, ensuring all parties have clarity on their rights and obligations within Switzerland's legal framework.

1. Parties: Identification of all parties: Guarantor (bank/insurance company), Principal (tenant), and Beneficiary (landlord)

2. Background: Context of the guarantee, referring to the underlying rental agreement and the obligation to provide a rental guarantee

3. Definitions: Key terms used in the agreement, including 'Guaranteed Amount', 'Rental Agreement', 'Guarantee Period', and 'Claim Notice'

4. Guarantee: Core section specifying the guarantee amount, scope, and nature of the guarantee obligation

5. Duration: Term of the guarantee, including start date and conditions for termination

6. Claims Procedure: Process and requirements for making a claim under the guarantee, including notice requirements and documentation

7. Payment Terms: Conditions and timing for payment upon a valid claim

8. Release and Discharge: Conditions under which the guarantee will be released or discharged

9. Representations and Warranties: Basic confirmations from all parties regarding their capacity and authority

10. Notices: Communication requirements and contact details for formal notices

11. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction