James Karrat
(Sales Associate)
Intro: Welcome to another Berger Bite!
James Karrat: Good afternoon, My name is James Karrat from Berger Commercial Realty. I'm here to talk to you today about the floating or rolling personal guarantee. Now, a regular personal guarantee is one in which you make a promise that if the corporation that signed the lease defaults on that lease, you're individually responsible for the remaining balance of the lease. Now, for a rolling or floating guarantee, this gives landlords and tenants another option when they're forming the lease. A rolling guarantee does not have to be for the full term of the lease, and it can be for only one year the least. So, for instance, you can have a rolling one year guarantee on a five-year lease. So, for any one year of that five-year lease, you would be responsible for that one year and that one year only. So, say, for instance, if you have a five-year deal, and after three years, the tenant defaults, that tenant would only be responsible for one remaining year of that lease, not two. Thank you.
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