Document background
The Lease Guaranty is a crucial document in Dutch property leasing arrangements, providing security to landlords by ensuring a third party will fulfill the tenant's obligations if the tenant defaults. This document is commonly used in both commercial and residential contexts, though its terms and requirements vary significantly between these settings. Under Dutch law, the Lease Guaranty must clearly define the guaranteed obligations, their scope, and duration, while complying with the requirements of the Dutch Civil Code regarding suretyship (borgtocht). The document is particularly important in situations where landlords require additional security beyond the tenant's covenant, such as when leasing to new businesses, foreign companies, or tenants with limited financial history. The guarantee can be provided by corporate entities, financial institutions, or individuals, though different legal requirements apply to each type of guarantor.
