What is a form of guarantee agreement in a commercial lease agreement? 6 Answers as of September 15, 2011

What is a "Form of Guarantee agreement" in relation to a commercial lease agreement? I am a prospective tenant in an office building and have never seen such a form as this one attached to my lease.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Michael R. Nack, Attorney at Law
Michael R. Nack, Attorney at Law | Michael R. Nack
I would need to read the actual document before I could give you any specific advice, but it sounds as if the landlord is willing to lease the premises to your business entity as long as you personally and individually guarantee that the rent will be paid. In that way, the landlord could sue you and collect from you, personally, in case your business entity breached the lease.
Answer Applies to: Missouri
Replied: 9/15/2011
Law Offices of Steven A. Fink
Law Offices of Steven A. Fink | Steven Alan Fink
When the tenant is a corporation or llc, the landlord usually requires the principals of the business to sign a personal guarantee. If the company goes out of business or cannot pay its obligations, the principals are required to pay on the lease.
Answer Applies to: California
Replied: 9/13/2011
Law Office of Neal L. Weinstein
Law Office of Neal L. Weinstein | Neal L. Weinstein
It sounds like it is simply a guarantee, usually personal to the tenant. If the tenant is a business entity, most landlords require a personal guarantee.
Answer Applies to: Maine
Replied: 9/13/2011
Law Office of Jared Altman
Law Office of Jared Altman | Jared Altman
You have got to read and understand every word of that guarantee. I strongly, strongly urge you to consult with an attorney so you know exactly what you're responsible for. I've litigated many guarantees where people didn't understand what they were signing.
Answer Applies to: New York
Replied: 9/13/2011
The Davies Law Firm, P.A.
The Davies Law Firm, P.A. | Robert F. Davies, Esq.
This is probably what is going on, but I need to see the documents to know for sure: You are being asked to personally guarantee and promise that all money will be paid to the landlord and all parts of the lease will be followed and complied with. This is serious stuff. You should have a lawyer look at it and explain it; you may want the lawyer to try to get some of the worst parts changed, if possible.
Answer Applies to: New Jersey
Replied: 9/12/2011
Click to View More Answers: