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Personal guarantees in commercial leases: limiting your exposure
How a capped ‘good guy’ guarantee protects your personal assets.
Eleanor Vance
Founding Partner · Real Estate
Published
Reading time
6 min read
A personal guarantee can outlast the business that signed the lease.
A full personal guarantee makes your home answerable for every dollar of rent for the whole term. It rarely needs to.
The good guy guarantee
Liability ends once you give notice, pay through the date you leave and return the space in good condition.
Cap it
Tie the guarantee to a fixed number of months of rent.
Let it burn off
After a period of timely payment, the guarantee should fall away.
Commercial leases
Real Estate
New York
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Written by
Eleanor Vance
The lawyer you meet is the lawyer who does the work. That has not changed since our first client.
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eleanor.vance@gravislaw.com
Legal disclaimer
This article is for general information and is not legal advice. Reading it does not create an attorney–client relationship. Lease terms and market practice change, so speak with a lawyer about your own circumstances before you sign. Prior results do not guarantee a similar outcome.
Eleanor Vance
Founding Partner · Real Estate
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