Document background
The Rent Guarantee Agreement is essential in Saudi Arabian real estate transactions where additional security is required for rental obligations. This document is commonly used when a landlord requires extra assurance beyond the standard tenant commitments, particularly in high-value commercial leases or when dealing with new tenants without an established rental history. The agreement must comply with Saudi Arabian law and Sharia principles, making it distinct from conventional Western guarantee agreements. It typically includes detailed provisions about the guarantee's scope, enforcement mechanisms, and the specific circumstances under which the guarantee can be called upon. The document is structured to work within the Saudi legal framework, including recent reforms under Vision 2030 and the Ejar system, and provides clear remedies that are enforceable under local law.
