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Lease Guaranty & Good Guy Clause
A credit enhancement guaranteeing lease obligations, often paired with a Good Guy clause releasing guarantors once keys are peacefully surrendered.
A Lease Guaranty is an enforceable legal agreement where a third party (often a corporate parent or business owner personally) unconditionally guarantees a tenant's financial and performance obligations under a commercial lease.
A Good Guy Clause is a limited personal guaranty releasing the individual guarantor from future rent liabilities once the tenant vacates peacefully, surrenders clean possession, and pays all rent accrued through the surrender date.
More in Leasing
See all Leasing terms →Assignment of Lease
The complete legal transfer of an existing tenant's entire leasehold rights, obligations, and physical occupancy to a new incoming tenant.
Read definition →Base Rent
The fixed minimum monthly rent agreed upon in a lease agreement, excluding utilities, janitorial, or shared operating expense pass-throughs.
Read definition →Co-Tenancy Clause
A commercial lease clause granting rent reductions or termination rights if anchor tenants vacate or center occupancy falls below agreed levels.
Read definition →Continuous Operation Covenant
A commercial lease requirement obligating a retail tenant to keep its store open, fully stocked, and staffed during designated business hours.
Read definition →Escalation Clause
A commercial lease provision specifying annual rent increases tied to a fixed percentage, stepped rates, or the Consumer Price Index (CPI).
Read definition →