A landlord renting a commercial or residential property may ask for an Agreement of Personal Guaranty for Lease Agreement as an additional security towards the performance of the lease. Such a personal guarantee is necessary in the case the landlord is not content with the security deposit withheld. A friend or a relative of a tenant may issue such personal guarantee to the landlord. Such personal guarantee is offered in case of
- Residential lease
- Commercial lease
However, certain prerequisites that need consideration are
- The landlord has a right to file a lawsuit against a guarantor for the recovery of the debt upon the failure in payment.
- The guarantor offers an unconditional guarantee of making the payment to the landlord in case the tenant fails to make the payment on time.
Therefore, it is strongly advised that please issue such legal instrument only for a trustworthy person. Entering into a legal agreement of such kind is risky for the guarantor especially when the person issues a personal guarantee for a bad tenant.
5 Steps To Prepare Agreement of Personal Guaranty for Lease Agreement Accurately
A personal guarantee is a key document and requires the utmost attention while preparing it. The guarantor must personally sign this form. Please prepare this legal instrument accurately by following these five simple steps.
- Step 1: Specify the date of the execution of the original lease agreement on the first line.
- Step 2: Specify the legal names of the landlord and the tenant who have entered into a lease agreement. Use a separate line for entering the names of both parties. Enter the tenant’s name on the next blank line to guarantee the performance. Please enter the same name as it reflects in the original lease agreement.
- Step 3: Enter the date of execution of the agreement of personal guarantee in the required format on the following line.
- Step 4: Sign the agreement as a guarantor.
- Step 5: Enter your information like print name, detailed address, phone number, and email address on the respective lines.
