Rent Guarantee Agreement Template for Hong Kong

The Rent Guarantee Agreement is a crucial document in Hong Kong's property rental market, commonly used in both commercial and residential leasing arrangements. It provides additional security for landlords by having a third party (guarantor) guarantee the tenant's obligations under the lease. This document is particularly important when dealing with new businesses, overseas tenants, or situations where the tenant's financial standing alone may not satisfy the landlord's requirements. The agreement must comply with Hong Kong's contract law and property regulations, including the Landlord and Tenant (Consolidation) Ordinance. A properly structured Rent Guarantee Agreement will detail the guarantee's scope, duration, enforcement mechanisms, and the specific circumstances under which the guarantor becomes liable for the tenant's obligations.

1. Parties: Identifies and defines the Landlord, Tenant, and Guarantor with their full legal names and addresses

2. Background: Describes the context of the guarantee, including reference to the principal tenancy agreement and the landlord's requirement for a guarantee

3. Definitions: Defines key terms used throughout the agreement including 'Guaranteed Obligations', 'Tenancy Agreement', 'Rent', and 'Term'

4. Guarantee and Indemnity: Core section detailing the guarantor's obligations, scope of the guarantee, and indemnity provisions

5. Duration of Guarantee: Specifies the time period for which the guarantee remains valid and any conditions affecting its duration

6. Guarantor's Obligations: Detailed list of specific obligations the guarantor is undertaking, including payment of rent, damages, and other costs

7. Enforcement and Remedy: Explains when and how the landlord can enforce the guarantee and available remedies

8. Preservation of Rights: Maintains the landlord's rights against the guarantor despite any changes in circumstances

9. Representations and Warranties: Guarantor's confirmations about their capacity and authority to provide the guarantee

10. Notices: Specifies how formal communications between parties should be made and delivered

11. Governing Law and Jurisdiction: Confirms Hong Kong law governs the agreement and jurisdiction for dispute resolution