Document background
The Commercial Lease Guaranty Form is essential in Nigerian commercial property transactions where additional security is required for lease obligations. It is commonly used when leasing to new businesses, companies with limited trading history, or where the landlord requires extra assurance of rent payment and lease compliance. The document, governed by Nigerian federal and state property laws, establishes a legally binding commitment from a guarantor (often a parent company, director, or related entity) to fulfill the tenant's obligations if they default. The guarantee typically covers rent payments, service charges, repair obligations, and other lease covenants. This form is particularly important in major Nigerian commercial centers where high-value lease transactions require robust security arrangements.
