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Commercial Leasing

Lease Guaranty

Drafting lease guaranty agreements manually requires hours of research across multiple legal sources, careful review of underlying lease terms, and meticulous attention to jurisdiction-specific enforceability requirements. Attorneys waste valuable billable time on repetitive formatting, citation verification, and ensuring all essential clauses meet current legal standards.

Automation ROI

Time savings at a glance

Manual workflow3.5 hoursAverage time your team spends by hand
With CaseMark12 minutesDelivery time with CaseMark automation
EfficiencySave 26.3x time with CaseMark

The Problem

Drafting comprehensive lease guaranty agreements is time-intensive and requires meticulous attention to jurisdiction-specific requirements, waiver provisions, and enforcement mechanisms. Attorneys spend hours reviewing underlying leases, researching state-specific guaranty laws, and ensuring every provision maximizes landlord protection while remaining enforceable. Missing critical waiver language or failing to address bankruptcy scenarios can render the guaranty worthless when enforcement is needed most.

The CaseMark Solution

CaseMark automates lease guaranty drafting by analyzing your uploaded lease agreement and generating a comprehensive, jurisdiction-specific guaranty tailored to your transaction. The AI extracts critical lease terms, incorporates all necessary waiver provisions, addresses bankruptcy and modification scenarios, and ensures compliance with state-specific enforceability requirements. You receive a polished, attorney-ready guaranty document in minutes.

Key benefits

How CaseMark automations transform your workflow

Generate complete lease guaranty agreements in 8 minutes vs. 3.5 hours manually

Automatically extract lease terms and party details from uploaded documents using RAG technology

Access verified legal sources from bar associations, Nolo, and LegalZoom for best practices

Ensure jurisdiction-specific enforceability with AI-powered legal research and citations

Maintain consistency across all guaranty sections with standardized, court-tested language

What you'll receive

Parties
Recitals
Guaranty Obligations
Absolute and Unconditional Guaranty
Representations and Warranties
Duration and Termination
Governing Law and Jurisdiction
Signatures

Document requirements

Required

  • Underlying Lease Agreement

Optional

  • Guarantor Financial Statements
  • Correspondence Regarding Guaranty
  • Entity Formation Documents
  • Prior Guaranty Forms

Perfect for

Commercial real estate attorneys representing landlords
Property management companies requiring tenant guaranties
Real estate developers leasing retail or office space
Corporate counsel for commercial landlords
Solo practitioners handling commercial lease transactions
Law firms with commercial real estate practice groups

Also useful for

This workflow is applicable across multiple practice areas and use cases

Commercial real estate transactions routinely require lease guaranties to secure tenant obligations in property acquisitions, developments, and portfolio management.

Lease guaranties are fundamental documents in commercial real estate practice, protecting landlord interests across office, retail, industrial, and mixed-use properties.

Corporate Finance78% relevant

Corporate finance attorneys use lease guaranties when structuring corporate real estate portfolios and ensuring parent company guarantees for subsidiary lease obligations.

Lease guaranties are critical in corporate finance transactions involving real estate assets, particularly for securing obligations of newly formed or undercapitalized entities.

Loan And Financing72% relevant

Lenders require lease guaranties as collateral protection when financing commercial properties, ensuring lease income streams remain secure regardless of tenant financial condition.

Lease guaranties directly impact property valuations and loan-to-value ratios in commercial real estate financing, making them essential documents for lenders and borrowers.

Commercial litigators enforce lease guaranties when pursuing guarantors for unpaid rent, property damage, or lease violations after tenant defaults.

Well-drafted lease guaranties are critical litigation tools for landlords seeking recovery, and litigators must understand guaranty terms to assess enforceability and collection prospects.

Frequently asked questions

Q

What's the difference between a guaranty of payment and a guaranty of collection?

A

A guaranty of payment allows the landlord to pursue the guarantor immediately upon tenant default without first attempting to collect from the tenant or exhaust other remedies. A guaranty of collection requires the landlord to first pursue the tenant and demonstrate that collection efforts have failed before seeking payment from the guarantor. CaseMark drafts guaranties of payment and performance, providing maximum protection for landlords by eliminating the requirement to proceed against the tenant first.

Q

Does the guaranty need to be notarized to be enforceable?

A

Notarization requirements vary by state, and many jurisdictions require notarization for guaranties of real estate-related obligations to be fully enforceable. CaseMark identifies the jurisdiction based on the property location and includes appropriate notarization language when required by state law. The system also flags when spousal consent may be necessary in community property states to ensure the guaranty binds all relevant assets.

Q

How does the guaranty handle lease modifications or extensions?

A

CaseMark includes comprehensive provisions addressing lease modifications, stating that the guarantor's obligations continue despite any amendments, extensions, or renewals of the underlying lease, even if such changes increase the guarantor's liability. The guaranty includes advance consent to modifications, eliminating the need to obtain the guarantor's signature on future lease amendments. You can customize whether the guaranty covers renewal terms or terminates after the initial lease period.

Q

What happens to the guaranty if the tenant files for bankruptcy?

A

CaseMark includes specific bankruptcy-proof provisions stating that the guarantor's obligations are not discharged or affected by any bankruptcy proceeding involving the tenant. The guaranty includes explicit waiver of any discharge the tenant may receive in bankruptcy, ensuring the guarantor remains liable for the full amount of guaranteed obligations. This protects landlords from losing their recourse against the guarantor when the tenant's obligations are discharged in bankruptcy court.

Q

Can I limit the guaranty to a specific dollar amount or time period?

A

Yes, CaseMark can generate either unlimited guaranties covering all lease obligations or limited guaranties capped at specific dollar amounts or time periods. You can specify whether the guaranty covers only the initial lease term or extends through renewals, and whether it caps liability at a maximum amount. The system adjusts all related provisions accordingly to ensure internal consistency throughout the document.