Guaranties may be of payment, permitting direct action against the guarantor without pursuing the tenant, or of collection, requiring exhaustion first. Good guy guaranties limit exposure to obligations accruing before surrender.
Material lease modifications may discharge the guarantor.
Alternative Names:
Guaranty of Lease, Lease Guarantee
Why it Matters?
Material modification without guarantor consent discharges the guaranty in many jurisdictions, which means a landlord that extended the term, increased the space, or restructured rent may have released the guarantor entirely. Obtaining a reaffirmation with any amendment is the control. Good guy guaranties are the negotiated middle ground, capping exposure at obligations through surrender rather than the full remaining term.
Frequently Confused with
Related terms
Frequently asked questions
What discharges a lease guaranty?
What is a good guy guaranty?
