After you successfully negotiated for a lease guaranty, the last thing the landlord wants to discover later is that the Guaranty is not enforceable or difficult to enforce. Here are 5 tips to help avoid such a problem when completing the AIR Lease Guaranty:
- Entity as Guarantor – Identify Name and Title of Person Signing: The signature block in the AIR Guaranty does not have a specific space for the signatory to write-in his/her name and title. If the Guarantor is an entity, consider including a separate signature block so that the name and title of the person signing the Guaranty is clear. If this information is not included, the Guarantor may later argue that the Guaranty is not enforceable because it was not approved/authorized by the Guarantor.
- Entity as Guarantor – Verify Name Provided Is Correct: If the Guarantor is an entity, make sure the name of the entity provided is correct. The name can easily be checked online with the California Secretary of State: http://kepler.sos.ca.gov. If the name provided is inaccurate (or the entity does not appear to exist), the issue should be addressed at the front-end to avoid complications in enforcing the Guaranty.
- Individual as Guarantor – Obtain SSN: If the Guarantor is an individual, make sure to have identifying information in your file, such as a social security number and driver’s license number. If the Guarantor needs to be pursued later, this information may be helpful in performing asset searches, seizing assets, and serving a lawsuit.
- Guarantor’s Contact Information: Include the contact information (address, telephone number, etc.) for the Guarantor. If this information is not included, it is often more difficult to serve the Guarantor with notice of default or a lawsuit.
- Lease Amendments – Obtain Guarantor’s Signature: If the Lease is being amended, especially if the term is being extended, include a signature block for the Guarantor in the amendment. If the Guarantor does not sign an amendment extending the term, the Guaranty may not be enforceable with respect to the rent due during the extended term.
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