Think Twice Before Listing Guarantors by Name
Listing the name of the person or entity that guarantees a tenant’s lease performance in the text of the guaranty seems like a perfectly normal and sensible thing to do. But it can have unforeseen and unfavorable legal consequences. The problem is that adding, subtracting, and changing guarantors at the last possible minute is a common scenario in deal making. In the pressure of the moment, the need to change the guaranty text to list the new names is easy to overlook.