What Is a Personal Guaranty on a Lease?
Short Answer
A personal guaranty is a separate promise by an individual or other guarantor to answer for some or all of a tenant's lease obligations. If the tenant defaults, the landlord may pursue the guarantor within the guaranty's terms. Guaranties vary: some cover all rent and damages, some are capped or limited in time, and some allow release after conditions are met. Forming an LLC does not protect a person from a guaranty the person voluntarily signs. Review the scope, duration, remedies, amendments, renewal periods, and termination conditions before signing.
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Over 25 years representing business owners in disputes.
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When Does This Become Urgent?
- The guaranty is unlimited or survives assignment
- More than one owner is being asked to guarantee
- The lease has large buildout, acceleration, or restoration obligations
What Usually Goes Wrong?
- Focusing on rent while ignoring the guaranty
- Assuming surrender of the premises ends liability
- Letting lease amendments expand guaranty exposure automatically
What Should You Have Ready?
- Lease and all guaranty pages
- Rent schedule and term
- Ownership and financial information
- Proposed caps, burn off, or release terms
What Typically Happens Next?
- Identify the business objective, current commitments, and decision deadline.
- Review the entity records, contracts, approvals, and facts that control the issue.
- Coordinate tax, licensing, employment, immigration, or other specialized advice where needed.
- Document the chosen structure and complete filings, consents, and agreements in the correct sequence.
The appropriate sequence and documents depend on the entity, transaction, location, and people involved. This overview is not a prediction of process or outcome.
Related Questions
- What licenses and local approvals are needed to open a business in Miami?
- What are a Certificate of Use and Business Tax Receipt in Miami?
- Can I operate a Miami business from my home or condominium?
Also review Start a Business in Miami, the Starting or Relocating a Business to Miami hub, and the Ask Aaron hub.
We Don't Make Promises. We Have Results to Prove It.
Aaron Resnick has handled business disputes in Miami since 1998 and is a fourth generation Miami resident. He works hands-on on every case; the client gets Aaron on every major litigation issue, not a junior partner. The Law Offices of Aaron Resnick represents large corporations, Miami businesses and their owners, professional athletes and entertainers in Miami Dade, Broward and Palm Beach counties and across Florida in business litigation and business counsel. Call 305-672-7495 or request a consultation.
This page provides general information and is not legal advice. Prior results do not guarantee or predict a similar outcome.
Reading this page or contacting the firm does not create an attorney-client relationship. Requirements and deadlines depend on the facts. If your matter is time sensitive, call the firm.
