LeaseGuarantee Contract
For valuable consideration, receipt of which is hereby acknowledged, LeaseGuarantee Corporation, a California corporation (hereinafter “LG”), hereby undertakes responsibility for the financial performance of the tenant(s) (“Tenant”) of Landlord in accordance with the terms of the rental or lease agreement entered into by Landlord and Tenant (“Tenancy Agreement”), subject to the following terms and conditions:
LG’s Obligations.Following a default by Tenant, and subject to the limitations set forth herein, LG promises to pay to Landlord, or Landlord’s successor-in-interest, all unpaid rent, damages, legal fees and costs owed by Tenant under the Tenancy Agreement in an amount determined by a court judgment in favor of Landlord (“Judgment”), up to a maximum of the LeaseGuarantee contract amount selected by Landlord and confirmed by LG at the inception of the Tenancy Agreement. LG shall have no liability to Landlord for losses that have not been adjudicated in a court action against Tenant or for any losses that are unrelated to the Tenancy Agreement.
Providing the time for appealing a judgment in favor of Landlord has expired, any payments due to Landlord, or Landlord’s successor-in-interest, shall be made within thirty (30) days following the submission of a claim by Landlord, or Landlord’s successor-in-interest together with the additional documents required under the terms of this Contract.
LG’s responsibility for Tenant’s financial performance under the Tenancy Agreement shall be in effect for a period of one year, subject to renewal as hereinafter provided, based on LG’s underwriting guidelines applicable at the time of a requested renewal.
Renewals.Upon payment of a non-refundable application fee in the amount of $19.95 per tenant (subject to change) and cosigner/guarantor, if applicable, to cover the cost of updating Tenant’s file and the creation of an offer to renew the financial commitment made herein, Landlord or Tenant may apply for a renewal of LG’s financial commitment not less than seven (7) days prior to the expiration of the current term agreed to by LG.
An application for renewal of LG’s commitment must include: (i) Tenant’s consent for LG to access his or her current credit profile for the sole purpose of determining whether to offer to renew its financial commitment; and (ii) Landlord’s “affidavit of good standing” for Tenant, prepared and dated during the last 30 days of the current tenancy, attesting to the fact that all rents have been paid to date in a timely manner and there have been no changes in the Tenants under the Tenancy Agreement.
LG’s offer of a renewal commitment, and the fee for any such renewal that is offered, will be based on LG’s sole determinations concerning the current tenancy and Tenant’s credit status. An offer of renewal is not guaranteed and the renewal fee may vary.
Landlord’s Obligations.Landlord acknowledges and agrees that: (i) This Contract is limited to the financial performance of the Tenant, including co-signors and guarantors, who are original parties to the Tenancy Agreement, and for whom tenant screening services were provided by LG, or an affiliate of LG, within the 10 days preceding the date of the Tenancy Agreement; (ii) Landlord’s approval of the Tenancy Agreement, acceptance of Tenant, and purchase of LG’s LeaseGuarantee, shall constitute confirmation of Landlord’s understanding and agreement to the terms of this Contract;(iii) Landlord shall obtain Tenant’s acknowledgement and agreement to the terms of this Contract by completing the form Addendum to Tenancy Agreement provided by LG, which shall constitute an Addendum to Landlord’s Tenancy Agreement with Tenant;(iv) Landlord shall provide LG with written notice of all changes in the Tenancy Agreement that are made during the term of this Contract, and any renewal periods, within the ten (10) days following the date of any such change; (v) Landlord shall provide LG with information and/or copies of any documentation that may impact the financial stability of Tenant; (vi) within ten(10) days following service, Landlord, or its successor-in-interest shall also provide LG copies of all preliminary notices served on Tenant that are required for the filing of eviction proceedings against Tenant and any other occupants of the Premises, including co-signors, if any; (vii) any action filed by Landlord, or its successor-in-interest, on the Tenancy Agreement shall name as defendants, Tenant, all other known occupants of the Premises at the time of default, all co-signers, original signers, and guarantors, if any, during the period of the Tenancy Agreement, and the action shall seek to impose joint and several liability against all of said responsible parties; (viii) within ten (10) days following the date Landlord, or its successor-in-interest, files an action, Landlord shall provide LG with written notice of the filing and a copy of the complaint that was filed; (ix) the action filed by Landlord, or its successor-in-interest, must be filed during the term of this Contract, and judgment thereon must be entered within the 6 months following the filing of the action; and (x) the judgment obtained by Landlord, or its successor-in-interest, must include, as a judgment debtor, the original Tenant whose financial performance has been guaranteed by LG.
Landlord, or its successor-in-interest, shall be eligible to submit a claim seeking payment by LG following the expiration of the time for Tenant, and all other parties against whom Landlord obtained a judgment, to appeal the Judgment in favor of Landlord, or upon written notification and verification that any appeal of the Judgment has been resolved in favor of Landlord, whichever first occurs.
Upon submittal of a claim, and as a condition of payment, Landlord, or its successor-in-interest, shall provide LG with: (i) a complete copy of the Judgment; (ii) a complete, irrevocable, and unconditional assignment of the Judgment; (iii) complete copies of all original applications to rent or lease the Premises that were received from Tenant(s); (iv) an executed copy of Addendum to Tenancy Agreement provided by LG and (v) such other documents as are reasonably required in order to complete the assignment of the Judgment to LG.
Upon payment by LG to Landlord, or its successor-in-interest, LG shall have all rights to enforcement and collection of the Judgment in favor of Landlord, in addition to all post judgment costs and fees to which the judgment creditor is entitled, without any further obligation to Landlord or its successor-in-interest. LG reserves the right to communicate directly with a tenant that is in violation of their terms of tenancy, as well as any co-signors and guarantors, at any time in an effort to resolve financial issues relating to the Tenancy Agreement prior to Landlord obtaining a Judgment Upon notification of any breach, LG may act to intervene to resolve any delinquency.
Landlord understands and agrees that an LG Contract is not insurance and can only be obtained in conjunction with the screening of a new applicant who becomes a tenant under Landlord’s Tenancy Agreement, or a co-signor or guarantor of any such tenant. LG Contracts are available only for new applicants and renewals for tenants with an existing LG Contract. LG Contracts can only be obtained through an authorized LG tenant screening provider. LG Contracts are not available for existing tenants, or tenants already in default of the terms of the Tenancy Agreement, or under eviction.
Tenant(s)’ Obligations.Tenant acknowledges and agrees: (i)Tenant’s purchase of this Contract does not in any way, eliminate, reduce or minimize his / her obligations described in the Tenancy Agreement; (ii) the purchase of this Contract was agreed to by Landlord and Tenant prior to entering into the Tenancy Agreement as a condition of Landlord’s approval; (iii) a breach of the Tenancy Agreement, or this Contract, will subject Tenant to collection efforts including, but not limited to, reporting delinquencies to the major credit bureaus, enforcement and execution of judgments, and any other collection rights and procedures that are legally available to a judgment creditor, and liability for the amount of any judgment obtained against Tenant together with additional recoverable interest, costs, and attorney fees; and (iv) that all tenants, co-signors, and guarantors listed on the Tenancy Agreement with Landlord are jointly and severally liable for all damages resulting from a breach of the Tenancy Agreement.
Limitation of Liability.LG’s obligation for payment to Landlord, or its successor-in-interest, shall begin on the date that LG receives payment for its financial commitment (“Contract Date”) and shall continue for a period of twelve months from the Contract Date, plus any extended periods for which LG has received additional consideration for continuing its financial commitment. LG’s liability to Landlord, or its successor-in-interest, shall be limited to judgments that are based on the Tenancy Agreement, and: (i) in an amount that is equal to the total amount of the Judgment, or the maximum amount provided for in LG’s financial commitment, whichever is less; and (ii) on claims relating to the Premises and Tenants described in the Tenancy Agreement and is not transferable to any other addresses, tenants, or property owners.
It is expressly understood and agreed by the parties hereto that: (i) this Contract is made between LG and Landlord with regard to the Tenancy Agreement between Landlord and Tenant, and it is dependent upon Tenant’s non-performance under the Tenancy Agreement; (ii) LG provides tools that are designed to help evaluate and screen prospective and renewing tenants; (iii) LG products are offered only in conjunction with the tenant screening and/or renewal process; (iv) LG products are intended to aid in the decision making process and are not an endorsement of the creditworthiness or character of a particular tenant; (v) LG products may not be purchased separately; (vi) if this Contract is purchased through an affiliate of LG, each of the representations, undertakings and Contracts herein made on the part of LG are not representations, undertakings and Contracts by such affiliate, but are made and intended for the purpose of binding only LG and under no circumstances shall the affiliate be responsible or liable for any loss or damage, including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or relating to this Contract, or in connection with the use of this website; and (vii) a non-refundable, non-transferable, and non-prorated one-time fee to secure this Contract has been paid to LG.
Conditions Precedent.LG’s obligation to make payment to Landlord, or Landlord’s successor-in-interest, under this Contract is subject to the following conditions precedent: (i) LG’s receipt of the required fee for its financial commitment; (ii) Tenant’s agreement to the terms of the Tenancy Agreement; (iii) Landlord’s compliance with the terms and conditions of this Contract; (iv) the form of the Tenancy Agreement is the same form of document that Landlord requires from other tenants that are acceptable to Landlord without other measures to mitigate the risk of their non-performance; (iii) Landlord shall not cause or collude with anyone else to cause Tenant’s default; (iv) Landlord has the legal capacity and is fully authorized to enter into the Tenancy Agreement; and (v) the individual acting on behalf of Landlord is authorized to do so.
Force Majeure.LG will not be liable for nonperformance of its obligations due to circumstances beyond its control, including, but not limited to, natural disaster, fire, earthquake, flood, riot, war, labor disputes, acts of God, terrorism and acts of public enemy.
Entire Contract.This Contract sets forth the entire understanding between the parties on the subject matter hereof, and hereby supersedes any and all prior agreements between the parties with respect to the subject matter of this Contract, and there are no representations, warranties, covenants or agreements, express or implied, affecting this Contract that are not expressly set forth herein. The parties further acknowledge that they have read, understand, and agree with all of the terms and conditions set forth on and relating to use of the LG website and/or the website of any affiliate of LG.
Severability.If any term or provision of this Contract, or the application thereof to any person or circumstance, shall to any extent be held invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect other provisions of this Contract or the applications thereof which can be given effect without the invalid provision or application, and to this end the parties hereto agree that the provisions of this Contract are and shall be severable.
Notices.All notices required under this Contract must be in writing and must be sent by personal delivery, by United States registered or certified mail (postage prepaid), by an independent overnight courier service, or, if an email address has been provided by a party, then by email to the email address provided, or to such other addresses as a party may designate in writing. Notices delivered by courier are deemed delivered on the next business day after the day the party delivering the notice timely deposits the notice with the courier for overnight (next day) delivery. Notices given by email are deemed delivered upon actual receipt by the recipient. Any notice given by an attorney or agent acting on behalf of a party shall be effective as notice from such party.
Assignment and Successors.Neither party may assign either their rights or duties under this Contract without the written consent of the other party. This Contract shall be binding upon and inure to the benefit of the permitted successors and assigns of the respective parties and any person claiming, by, through or under any of the respective permitted successors or assigns.
Governing Law / Enforcement.This Contract and the rights and obligations of the parties shall be governed by and construed in accordance with California law. In the event an action is brought to enforce performance of this Contract, venue shall be in Los Angeles County and the prevailing party shall be entitled to recover reasonable attorney’s fees and court costs in addition to such other damages and/or relief as may be awarded.
LeaseGuarantee is a performance contract that covers intentional acts of dereliction by a Tenant, co-signor or guarantor, limited to non-payment of rent, property damage, and attorney fees that are incurred by Landlord, or its successor, during the period of the LeaseGuarantee Contract. It does not cover claims that result from fortuitous, unanticipated, and unintentional events or accidents that are not caused by a breach of the Tenant Agreement by Tenant, a co-signor, or guarantor. Furthermore, Lease Guarantee is a fully integrated part of the tenant screening process and is only available as an addendum or rider to a lease or tenancy agreement.