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550 S. Andrews Avenue, Suite 400, Fort Lauderdale, FL 33301

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.

Outro: Founded in 1998, Berger Commercial provides client-centric third party brokerage, property management, and receivership services throughout the Dade, Broward, and Palm Beach counties. Contact us to experience the power of market knowledge. For more Berger Bites, please subscribe to our YouTube channel!

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