Legal Question in Landlord & Tenant Law in New York

Re: Commercial Lease Guaranty

A personal guaranty (PG) is not at all uncommon for small or closely-held companies, especially of relatively recent vintage. Nonetheless, it is also not uncommon for the person giving the PG to get a good-guy clause and a time limit on the PG itself of some kind.

These are obviously important issues as they transfer liability from the corporate form to the owners (usually) of the corporation. It is very important that you be very level-headed when you negotiate these aspects of the lease as they can have far-reaching effects that long outlive the lease term itself. You should, by all means, be represented by both a reputable commercial RE broker (which will be paid for by the landlord) and attorney. You are welcome to call the office for a consultation if you like, or a referal to a broker or both.

John Friedman

212.366.1324

Re: Commercial Lease Guaranty

Your landlord is right to want the personal guarentee. However, it is not required nor is it standard. You can negotiate around it.

How long has the property been vacant? Are you paying full market rent?

Evaluate your badgaining position and then go forward.

You are welcome to a consultation for no fee.