Get New Consideration for Guaranty Signed After Lease

October 30, 2013
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If you’re a strong tenant, you may demand a guaranty from an owner to cover the cost of lease inducements—especially if the owner is financially shaky. If you demand such a guaranty after you and the owner have signed the lease, make sure the guaranty has new “consideration”—that is, payment, compensation, or something of value given in exchange for the guarantor’s promises. Typically, the party that provides a guaranty—whether an owner or tenant—usually does so at the lease signing.

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