Legal Question in Real Estate Law in California

A personal guaranty is a promise by someone other than the borrower to repay the debt if if the primary borrower does not. It is somewhat like, but not identical to being a co-signer. The most common situation (though far from the only one) in which a personal guarantee is given is when a closely held corporation, LLC or other business entity is the borrower, which would insulate the owners from liability. In order to give (significantly) greater assurance that the owners will not just walk away from the company if it cannot repay the debt, the lender will require they give a personal guarantee of the debt.