There may be good reason to have an Indemnifier rather than a Guarantor for a residential lease.
Here’s what the added schedule might look like:
“Schedule “I”
Third-Party Indemnity Agreement
(To be attached to and form part of the Lease dated __________ between __________ as Landlord and __________ as Tenant.)
In consideration of the Landlord entering into the Lease Agreement with the Tenant, the undersigned (the “Indemnifier”) hereby agrees to indemnify and save harmless the Landlord from and against any and all claims, demands, losses, liabilities, damages, costs (including legal fees on a full indemnity basis), and expenses of any nature or kind whatsoever, including but not limited to those arising from:
(a) the Tenant’s failure to pay rent or any other sums due under the Lease;
(b) any default, breach, or lack of performance by the Tenant of any covenant, obligation, or condition contained in the Lease;
(c) any damage to the Premises or common areas caused by the Tenant or anyone the Tenant is responsible for;
(d) any act or omission by the Tenant in the use or occupancy of the Premises; and
(e) any claim made against the Landlord as a result of the Tenant’s conduct.
This indemnity is intended to be absolute, continuing, and unconditional, and the Landlord shall not be required to take any steps against the Tenant before enforcing its rights against the Indemnifier. This indemnity shall survive the expiry or termination of the Lease and be binding on the Indemnifier and their heirs, executors, administrators, successors, and assigns.
Signed this ____ day of _______, 20xx.
Indemnifier
Name: ___________________________________
Signature: _______________________________
Address: _________________________________
Phone: __________________________________
Witnessed by:
Name: ___________________________________
Signature: _______________________________”
CAUTION: Always consult with a lawyer currently practicing in the Province before using any type of clause in an agreement.
Brian Madigan LL.B., Broker