Commercial Lease With Personal Guarantee In Washington
Description
Form popularity
FAQ
You may be able to negotiate your own exit terms by offering the landlord a deal. There is no guarantee that it will be accepted, however, and it might be a costly process. This involves finding a new tenant to take over your lease. The landlord will want to impose restrictions and make sure of their suitability.
Personal Guarantee Clause This will ensure that the landlord can go after the owner directly in the event of a breach. Without a personal guarantee, landlords can only go after the business for any breaches, like non-payment of rent.
Can a Commercial Lease Be Terminated Early? Your business is expanding and needs more space. You need less space due to downsizing. The landlord is failing to meet expectations. You're consolidating your portfolio through a merger or acquisition.
Effective June 6, 2024, commercial leases in Washington for a fixed term of more than one year no longer need to be notarized.
The term personal guarantee refers to an individual's legal promise to repay credit issued to a business for which they serve as an executive or partner. Providing a personal guarantee means that if the business becomes unable to repay the debt, the individual assumes personal responsibility for the balance.
The difference between corporate and personal guarantees is quite simple. A personal guarantee is when an individual agrees to take on the obligations of a debt for a debtor, whereas a corporate guarantee is when a guarantor is a corporation that takes on payment responsibilities.
There are two types of guarantee, which are generally referred to as see-to-it guarantees or pure guarantees and conditional payment guarantees.
This is a generic form of guarantee for use when a company (typically, the corporate parent) is asked to support the obligations of a party (obligor) under a commercial agreement. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.
