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Updated 6 months ago, 06/07/2024
Tenant rejects personal guarantee for option, but accepts for initial lease term.
Folks,
I am negotiating an owner-operated restaurant lease and tenant agrees to a personal guarantee for the initial lease term of five years but rejects a guarantee for the two options (five year each). We had not talked about it during the LOI negotiations, the issue popped up during the draft lease review process. Obviously it is in my best interest as LL to have a guarantee in place for the entire lease period, including options.
How would you deal with a situation like this?