Personal Guarantee Template

How to Write a Personal Guarantee?

Writing a Guarantee is a straightforward process since the document is flexible and can be changed depending on the situation. A common Personal Guarantee form consists of several parts which include the following:

1. Information About the Parties . In the first part of the document, individuals using this guarantee must enter the names and addresses of all three sides that are entering the deal.
2. Information About the Loan . Here the individual using this guarantee should report the data about the loan: the amount of money that was loaned, when it is due, and the date and number of the contract.
3. Subject of the Guarantee . This part of the form is supposed to be used to express the subject of the document, where a guarantor states their intention to share responsibility with the loan borrower.
4. Terms and Conditions . If there are any limitations to the guarantor's responsibility, for example, if they provide security to a part of the borrower's loan, it should be stated in this part of the guarantee.
5. Contact Information . For the purpose of timely correspondence, the parties involved in the deal should provide their contact information, such as mailing address, fax, telephone number, and email.
6. Signatures . Parties must express their consent with everything stated in the document by signing it and stating their names. The guarantee must be dated as well.
7. Witness . A document must be signed by a witness, for example, a public notary.

How to Get Out of a Personal Guarantee on a Commercial Lease?

Getting out of a Personal Guarantee lease is a complicated process, it actually might be easier to avoid it entirely. To do so, the individual can offer their potential landlord to pay a bigger deposit or transfer a prepayment that will cover the first six months or a year's rent.

If the guarantee is unavoidable, the individual should make some steps before signing it. First, they should review all the terms and conditions included in the document. Then they should try to negotiate the expiration period of the document and set it to one year or shorter. Lastly, they can always try to show the landlord a document that will prove that the business has a consistent profit. That can help to persuade the landlord to sign an amendment for the guarantee and decrease its period or the amount of liability.

How Long Is a Personal Guarantee Enforceable?

To understand how long a Guarantee is enforceable, an individual should first carefully review it, since it might include some terms that influence the duration of the document. For example, it can contain a clause that sets the time period of one year for the document to be enforceable. Seeking legal advice, in this case, can be a good idea as well. Most of the guarantees cover the loan period, so if the debtor is supposed to pay back to the lender within five years, then the document is likely to be enforceable for five years.

Related Tags and Templates:

• Revolving Credit Agreement;
• Loan Agreement;
• Guarantee Agreement.