Personal Guarantees for Commercial Leases

Wendy Lambie's Commercial Real Estate Legal Blogs

Licensed for 11 years

Attorney in The Woodlands, TX

Wendy Lambie

Free initial consultation, Credit cards accepted, Fixed hourly rates

Serving The Woodlands, TX

  • Serving The Woodlands, TX

  • Free initial consultation, Credit cards accepted, Fixed hourly rates

Senior Associate at firm The Strong Firm P.C.

Serving The Woodlands, TX

Free initial consultation, Credit cards accepted, Fixed hourly rates

A Negotiation inside a Negotiation

In times when the economy is down, it is no surprise that commercial tenant defaults increase. During those periods, it is also not surprising to see landlords become more firm about requiring personal guarantees of commercial leases. Typically, the individual signing a commercial lease is doing so on behalf of their capacity as an officer of an entity and has no personal legal obligation. If the entity goes out of business, or worse into bankruptcy, the landlord’s only remedy is to file against the failed entity (which likely won’t result in much recovery for the landlord). Enter the personal guarantee, which requires an individual be responsible from their personal assets (in addition to the entity’s assets)…(Click here to continue reading)

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