Proprietary guarantee for lease agreements – liability, termination, and key terms
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Short answer: A "proprieborgen" (guarantee as for own debt) normally means that the guarantor is liable "as for their own debt." For the landlord, this is a stronger form of security than a simple guarantee, as claims can generally be directed directly against the guarantor when the secured obligation is not fulfilled.
| Proprieborgen (Guarantee as for own debt) | The guarantor is liable as if for their own debt within the scope of the guarantee undertaking. |
| Enkel borgen (Simple guarantee) | The creditor normally needs to first establish that the principal debtor is unable to pay. |
| Residential lease | Chapter 12, Section 28 a of the Land Code gives the guarantor a statutory right to terminate the undertaking with specific notice periods. |
| Commercial lease | Chapter 12, Section 28 of the Land Code regulates, among other things, what can happen if provided security is impaired. |
What does the guarantee agreement secure?
The agreement should specify which obligations are covered: rent, default interest, damages, costs, restoration, or other explicitly stated obligations. An unlimited wording can have far-reaching consequences for the guarantor.
Residential and commercial premises – not the same rules
The Land Code’s rental rules make an important distinction between residential and commercial premises. For residential leases, a guarantor can, according to Chapter 12, Section 28 a, terminate the undertaking so that it ceases after the statutory notice period, at the earliest two years from the start of the undertaking. A condition that restricts this right is invalid.
How long should the guarantee be valid?
It should be clear whether the guarantee applies for a fixed contract period, extensions, amended rent, and any supplementary agreements. If the lease is subsequently amended significantly, questions may arise as to whether the original guarantee agreement still covers the changes.
Limited or unlimited guarantee?
A guarantee agreement can be limited to a specific amount or number of monthly rents. For the parties, the risk profile becomes significantly clearer if the maximum liability, which claims are covered, and the duration of the undertaking are explicitly stated.
Multiple guarantors
If several people act as guarantors, the agreement should specify whether the liability is joint and several or divided. Otherwise, it may become unclear how a claim should be directed and how a potential recourse claim between the guarantors should be handled.
Common mistakes
- it is not stated whether the guarantee is a proprieborgen or a simple guarantee,
- the lease is not clearly identified,
- the maximum scope of liability is missing,
- extensions and rent increases are not regulated,
- the special termination rule for residential leases is overlooked.
Guarantee Agreement / Proprieborgen 2026/2027
The template is designed for leases and commercial agreements and helps the parties clarify the scope, amount, liability, and termination.
FAQ
Can the landlord demand payment from the guarantor directly?
In the case of a proprieborgen, this is normally the very point of the undertaking: the guarantor is liable as for their own debt within the agreed scope.
Can a guarantor terminate a guarantee for a residence?
Yes, Chapter 12, Section 28 a of the Land Code gives the guarantor a special statutory right to terminate the undertaking with the notice periods specified therein.
Can the guarantee be limited to, for example, six months' rent?
Yes, a clear cap on the amount can be agreed upon, which reduces the risk of ambiguity regarding the guarantor's maximum liability.
This article provides general information and does not replace individual legal advice. Contracts, collective agreements, and circumstances in the individual case may affect the assessment.
