Parent Guarantee Lease Agreement Generator for Germany

The Parent Guarantee Lease Agreement is commonly used in German commercial real estate transactions where a landlord requires additional security beyond the tenant's own covenant. This document is particularly relevant when the tenant is a subsidiary or special purpose vehicle with limited financial resources, and the landlord seeks the financial backing of a stronger parent company. The agreement must comply with German legal requirements for both lease agreements (§§ 535-548 BGB) and guarantees (§§ 765-778 BGB). It typically includes detailed provisions on the scope of guaranteed obligations, enforcement mechanisms, and the duration of the guarantee. The document is essential for risk mitigation in high-value commercial leases and is often required by institutional landlords or in significant property developments.

1. Parties: Identification of all parties: Landlord, Tenant, and Guarantor (Parent Company), including full legal names, registration details, and addresses

2. Background: Context of the agreement, reference to the main lease agreement, and the relationship between the Tenant and Guarantor

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Lease Agreement', 'Property', and 'Guarantee Period'

4. Guarantee Obligations: Core section defining the scope of the guarantee, including all obligations covered and the nature of the guarantee (e.g., direct, unconditional, irrevocable)

5. Duration of Guarantee: Term of the guarantee, including start date and end conditions

6. Enforcement and Claims Process: Procedures for making claims under the guarantee, including notice requirements and payment terms

7. Guarantor's Undertakings: Specific promises and obligations of the guarantor, including maintaining financial capacity

8. Representations and Warranties: Statements about the guarantor's capacity, authority, and financial condition

9. Preservation of Rights: Landlord's rights preservation and the continuing nature of the guarantee

10. Notices: Communication procedures and contact details for all parties

11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

12. Execution: Signature blocks and execution requirements complying with German law