An AGM is an agreement that requires an outgoing tenant to guarantee the performance by the new tenant or “agent” of the tenant contracts included in the tenancy agreement. The limits of characteristics that an AGM can and cannot have are set by the Landlords and Tenants Act 1995. An AGM may ask the outgoing tenant to take over the lease or to resume a new lease for the remainder of the lease if the assignee goes bankrupt or goes into liquidation. However, an AGM must not include an obligation for the outgoing tenant to carry out an obligation of a person other than the assignee. If your landlord insists on including an AGM in the lease, you should seek legal assistance to find out if your sign is valid or not, to understand and possibly renegotiate the terms of the AGM before being legally bound. If your lease was granted after 1996, there are more restrictions that the owner can sue in the event of a breach of the lease. In most cases, the lessor asks you for an authorized warranty contract if the lease is awarded, and this is a condition of the assignment, otherwise you will not get your landlord`s license. The advantage of the agreement is that the responsibility to guarantee the obligations of your successor according to DerArt, that your direct successor has received the lease, ends. As a general rule, the lessor`s lawyers provide a standard form of the agreement to transfer the lease. If the agent does not resign, you will remain liable until the lease expires.

Negotiation and release of an authorized warranty contract: An authorized guarantee contract (also called AGM) is a document that a lessor can sign by the existing tenant (the agent) during a tenancy agreement to ensure the landlord`s position if the incoming tenant (the agent) does not comply with the terms of the tenancy agreement. The agent signs with the lessor an authorized guarantee contract to ensure the execution of the rental obligations by the agent. Simply put, an AGM is a kind of legally binding guarantee used to protect the interests of a lessor in cases where the tenant sells or cedes his tenancy agreement to a new tenant.