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Personal Guaranty of Lease

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GUARANTY (LEASE)

In consideration of and in order to induce , A General Partnership, to enter into that certain Lease, a copy of which is attached hereto and made a part hereof for all purposes, (the "Lease"), of even date herewith executed by and between , a Corporation (the "Lessee"), and (the "Lessor"), the undersigned (the "Guarantor") hereby:

1. Unconditionally and absolutely guarantees to Lessor, the full and prompt payment and performance by the Lessee of all of its obligations under and pursuant to the Lease, together with the full and prompt payment of any and all costs and expenses of and incidental to the enforcement of this Guaranty, including, without limitation, reasonable attorneys' fees.

2. Agrees that Lessor, may from time to time, without notice to Guarantor, which notice is hereby waived by Guarantor, extend, waive, renew or compromise the Lease, in whole or in part, without releasing, extinguishing or affecting in any manner whatsoever the liability of Guarantor hereunder, the foregoing acts being hereby consented to by Guarantor.

3. Agrees that this Guaranty shall remain in full force and effect and be binding upon Guarantor until the Lease is performed in full.

4. Agrees that so long as any portion of the Lease is due and owing or to become due and owing by the Lessee to Lessor, the Guarantor shall not, without the prior written consent of Lessor, collect or seek to collect from the Lessee the claim, if any, by subrogation or otherwise, acquired by the Guarantor or through payment of any of the Lease.

5. Agrees that the possession of this instrument of guaranty by Lessor shall be conclusive evidence of due execution and delivery hereof by Guarantor.

6. Agrees that this Guaranty shall be binding upon the legal representatives, successors and assigns of Guarantor, and shall inure to the benefit of Lessor and its successors, assigns and legal representatives.

7. Agrees that Guarantor may be joined in any action or proceeding commenced against the Lessee in connection with or based upon the Lease and recovery may be had against Guarantor in any such action or proceeding or in any independent action or proceeding against Guarantor should the Lessee fail to duly and punctually pay and perform any of the obligations of the Lease without any requirement that Lessor first assert, prosecute or exhaust any remedy or claim against the Lessee.

8. Agrees that this Guaranty shall be deemed a contract made under and pursuant to the laws of the State of and shall be governed by and construed under the laws of such state; and that, wherever possible, each provision of this Guaranty shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Guaranty shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of the Guaranty.

9. Agrees that no failure on the part of Lessor to exercise, and no delay in exercising, any right or remedy hereunder shall operate as or constitute a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy granted hereby or by any related document or by law.

10. The Guarantor agrees that (i) the Guarantor will indirectly benefit by and from the Lessee entering into the Lease by virtue of the fact that the Lessee is a related company of the Guarantor; (ii) the Guarantor has received legal and adequate consideration for the execution of this Guaranty and has executed and delivered this Guaranty to Lessor in good faith in exchange for reasonably equivalent value; (iii) the Guarantor is not presently insolvent and will not be rendered insolvent by virtue of the execution and delivery of this Guaranty; (iv) the Guarantor has not executed or delivered this Guaranty with actual intent to hinder, delay or defraud the Guarantor's creditors; and (v) that Lessor has entered into the Lease in reliance upon this Guaranty.

11. Warrants and represents to Lessor as follows:

(a) Corporate Existence and Power. The Guarantor is a corporation duly organized and validly existing in the State of and is fully qualified to do business and is in good standing in such state and in every other jurisdiction wherein the nature of its business or the character of its properties makes such qualification necessary, and has all requisite power and authority to carry on its business as now conducted and as presently proposed to be conducted.

(b) Corporate Authority. The Guarantor has full power and authority to execute and deliver this Guaranty and to incur and perform its obligations hereunder; the execution, delivery and performance by the Guarantor of this Guaranty and any and all other documents and the transaction contemplated hereby or thereby have been duly authorized by all necessary corporate action, will not violate any provision of law or the organizational documents pertaining to the Guarantor or result in the breach of, constitute a default under, or create or give rise to any lien under, any indenture or other agreement or instrument to which the Guarantor is a party or by which the Guarantor or its property may be bound or affected; and this Guaranty has been executed and delivered to Lessor by the corporate officers of the Guarantor who have been authorized by the Guarantor's Board of Directors or executive committee thereof, and who are authorized by and specified in the Guarantor's organizational documents pertaining to the Guarantor, to execute and so deliver such agreements.

(c) Enforceability. This Guaranty constitutes the legal, valid and binding obligation of the Guarantor enforceable in accordance with its terms.

(d) Litigation. There is no action, suit or proceeding pending or, to the knowledge of the Guarantor, threatened against or affecting the Guarantor which, if adversely determined, would have a material adverse effect on the condition (financial or otherwise), business, properties or assets of the Guarantor or which would question the validity of this Guaranty or any instrument, document or other agreement related hereto or required hereby, or impair the ability of the Guarantor to perform its obligations under the foregoing agreements.

(e) Default. The Guarantor is not in default of a material provision under any material agreement, instrument, decree or order to which it is a party or by which it or its property is bound or affected which would impair its ability to perform its obligations under this Guaranty.

(f) Consents. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any governmental authority or any third party is required in connection with the execution and delivery of this Guaranty or any of the agreements or instruments herein mentioned to which the Guarantor is a party or the carrying out or performance of any of the transactions required or contemplated hereby or thereby or, if required, such consent, approval, order or authorization has been obtained or such registration, declaration or filing has been accomplished or such notice has been given prior to the date hereof.

(g) Taxes. The Guarantor has filed all tax returns required to be filed and either paid all taxes shown thereon to be due, including interest and penalties, except those which are being contested in good faith and by appropriate proceedings or for which the Guarantor has provided adequate reserves for payment thereof, and it has no information or knowledge of any objections to or claims for additional taxes in respect of federal income or excess profits tax returns for prior years which would impair its ability to perform its obligations under this Guaranty.

Dated as of this day of , 20 .

*

By:

Its

STATE OF

COUNTY OF

The foregoing instrument was acknowledged before me, this the day of , 20 , by , the of .

________________________________

NOTARY PUBLIC

MY COMMISSION EXPIRES:

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What a Personal Guaranty of Lease Is and when parties use it

A Personal Guaranty of Lease is a signed promise by an individual (the guarantor) to assume financial and performance obligations under a commercial or residential lease if the tenant defaults. The guaranty runs alongside the lease and can be limited (time or amount), unconditional, or contingent on landlord remedies. Landlords commonly require guaranties when a tenant lacks operating history, credit history, or sufficient collateral. Guaranties are enforceable contracts governed by the lease terms and applicable state contract law and are frequently negotiated alongside rent, security deposits, and default remedies.

Why a Personal Guaranty of Lease matters for landlords and guarantors

A guaranty protects a landlord by creating a direct obligation on a third party to pay rent and cure breaches if the tenant fails to perform. For guarantors, the document clarifies exposure, limits, and triggering events so parties understand when personal assets may be at risk. The guaranty also supports credit and enforcement remedies in eviction, collection, or judgment proceedings, subject to state contract and surety law.

Why a Personal Guaranty of Lease matters for landlords and guarantors

Who commonly signs or prepares a Personal Guaranty of Lease

Each party should confirm authority to sign and consider legal review before execution, particularly where the guaranty is broad or indefinite.

  • Commercial landlords and property managers seeking additional credit support for tenant obligations.
  • Individual or corporate guarantors (owners, principals, investors) who accept liability for tenant performance.
  • Tenant legal or finance representatives who negotiate guaranty terms and limits.

Typical signatory roles

Guarantor — Individual

An owner or principal who signs personally and assumes direct liability. The guarantor should provide accurate identity details, financial statements, and understand the extent of indemnity, duration, and waiver of defenses within the guaranty.

Guarantor — Corporate

An authorized corporate officer signs on behalf of a company guarantor. Confirm corporate authority, attach resolution if required, and include the guarantor entity's legal name and state of formation to avoid unenforceability risks.

Core elements to include in a professional Personal Guaranty of Lease

A robust guaranty clearly defines the parties, secured obligations, scope of liability, duration, and remedies. Well-drafted clauses reduce ambiguity and improve enforceability across jurisdictions.

Parties

Full legal names and capacities for landlord, tenant, and guarantor, including business entity type and state of formation where applicable.

Scope of Guarantee

Whether guaranty is limited to rent, all lease obligations, or specific breaches; include monetary caps or carve-outs for consequential damages.

Duration

Start and end dates, survival of obligations after lease termination, and conditions that release the guarantor.

Remedies

Landlord remedies upon tenant default, notice and cure periods, acceleration clauses, and ability to pursue guarantor without first suing tenant.

Defenses and Waivers

Any waivers the guarantor makes (e.g., notice of default, presentment, demand, protest) and permitted defenses retained by guarantor.

Signature Formalities

Guarantor signature, printed name, date, witness or notary blocks if required by state law, and corporate officer authority documentation when applicable.

Essential data fields to collect on the form

Guarantor Name: Full legal name
Guarantor Address: Street, city, state, ZIP
Guarantor Contact: Phone and email
Tenant Name: Legal tenant entity
Lease Reference: Lease date and premises
Guarantee Limits: Monetary cap or indefinite

Step-by-step: complete and execute a Personal Guaranty of Lease

Follow these steps to prepare, sign, and deliver a guaranty that aligns with the lease and local requirements.

  • 01
    1 Prepare: Draft guaranty referencing the lease date and premises.
  • 02
    2 Verify: Confirm guarantor identity, authority, and any corporate resolutions.
  • 03
    3 Sign: Execute in the presence of required witnesses or notary, if applicable.
  • 04
    4 Deliver: Provide executed copies to landlord, tenant, and guarantor; retain originals.

How to configure an online signing workflow

Set up the digital workflow to collect signatures, apply authentication, and store executed copies securely.

Field Configuration
Signer Order Landlord first, guarantor second
Authentication Email + SMS code or ID verification as needed
Witness/Notary Enable notarization or attach witness fields
Storage Save signed PDF with audit trail

Where to send and how parties receive executed guaranties

Determine delivery paths for recordkeeping and evidence of notice and service.

  • Landlord Records: Retain original executed guaranty in lease file
  • Tenant Copy: Provide tenant a fully executed copy for their records
  • Guarantor Copy: Send guarantor the signed PDF and certificate of completion
  • Third Parties: Send copies to counsel, property manager, or lender as required

Digital signing, system needs, and common integrations

Ensure the chosen provider supports ESIGN/UETA compliance, audit trails, and any required notarization workflows for your state.

  • Authentication: Email + SMS or ID credentialing
  • File Formats: PDF and DOCX support
  • Integrations: CRM and document storage connections

Key timing and deadlines to track when using a guaranty

Observe critical dates tied to lease performance, notice, and enforcement to preserve remedies and rights.

Effective Date:

MM/DD/YYYY format: when guaranty obligations begin

Notice Periods:

Follow lease notice and cure periods precisely

Statute of Limitations:

Varies by state; affects enforcement timing

Record Retention:

Retain executed guaranties for required period

Notarization Windows:

Complete notarization within local regulatory timeframes

Typical process milestones for guaranty execution

A sequential view of major milestones from negotiation to final storage.

01

Negotiation

Agree on scope, caps, and duration during lease negotiation

02

Approval

Landlord and guarantor legal review and approvals

03

Execution

Signatures, witness, or notarization as required

04

Distribution

Deliver executed copies and update lease file

Common mistakes to avoid when preparing a guaranty

  • Using informal or abbreviated names that do not match government or corporate records, causing enforceability issues.
  • Failing to specify whether the guarantee is limited by time or amount, leaving exposure ambiguous for guarantor and landlord.
  • Skipping a required corporate resolution for an entity guarantor, which can void corporate authority to bind the guarantor.
  • Omitting witness or notarization where state law or lease requires it, impairing later enforcement or admission into evidence.

Legal and financial risks from an incorrect or incomplete guaranty

Personal Liability: Guarantor may be personally liable for unpaid rent and damages
Judgment Exposure: Credit judgments and collection proceedings may follow tenant default
Unenforceability: Defects in execution can render guaranty unenforceable
Increased Costs: Litigation, attorney, and collection fees can accrue
Credit Impact: Guarantor credit may be negatively affected
Waived Defenses: Broad waivers limit guarantor's available legal defenses

eSignature vendor comparison for executing guaranties (signNow first)

Compare basic pricing and key capabilities relevant to signing, storing, and notarizing guaranties; signNow is listed first per vendor ordering requirements.

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Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about Personal Guaranty of Lease execution

Answers to common legal, signing, and post-execution questions to help landlords, tenants, and guarantors avoid common pitfalls.


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