Agreement of Personal Guaranty is a legal document signed and executed by a guarantor to help the tenant of a leased property. The guarantor undertakes to repay delayed and/or default rent payment to the Landlord by signing this guarantee form.
This Agreement of Personal Guaranty must be attached to the original rental agreement as a part of it. Notarization of this document is not necessary; however, the Landlord may insist for the same. The guarantor must understand the significance of this document before signing it, as it clearly demands the delayed rent payment from the guarantor prior to filing a lawsuit for the recovery. In addition, this document permits the Landlord to recover the delayed rent payment from the guarantor. Please read this document carefully to understand its scope and consult a lawyer in case you do not understand any / all part/s of it.
Things you should know
- You as a guarantor may choose to sign and execute Agreement of Personal Guaranty to help a tenant well known to you. Please do not stand guarantor to an unknown tenant or under the influence of any parties involved.
- Please understand that you undertake the responsibility for the repayment of the delayed rent payment when the tenant fails to pay the same on time.
- The Landlord reserves the rights to file a lawsuit and/or recover the money payable to the Landlord from you.
- This Agreement of Personal Guaranty is unconditional. What it signifies to the guarantor is he/she must sign it with due consideration of the liability of repaying.
- This agreement is part of the original lease agreement and it is irrevocable in nature until the lease agreement terminates due to its natural expiry and/or due to the court orders to terminate the same.
Steps To Prepare the Agreement of Personal Guaranty
- Enter the date of signing and executing the personal guarantee agreement on the first line.
- Then enter the legal name of the Landlord.
- Enter the legal name of the tenant on the next line.
- Enter the tenant’s legal name again on the next line in conformity to the unconditional guarantee of the performance under the original rental agreement.
- The next line requests the date of execution of the agreement. Enter the date in the required format.
- Sign on the line above the name of the guarantor.
- Enter the legal name of the guarantor on the next line.
- Then enter the complete address including apartment number, street number, name of the city, name of the state, and zip code on the following lines.
- Enter the phone number of the guarantor. You may choose to enter home and/or mobile phone number.
- Enter the guarantor’s email address on the last line to complete the preparation of the Agreement of Personal Guaranty.