Property Management
In New Mexico, when a tenant's lease includes a 'personal guarantee,' the guarantor:
ATakes over the lease automatically
BIs personally liable for rent and lease obligations if the primary tenant defaults✓ Correct
CProvides an additional security deposit
DAssumes no liability
Explanation
A personal guarantee in a commercial lease obligates the guarantor (often the business owner or principal) to be personally liable for the tenant's obligations if the entity defaults, providing additional security to the landlord.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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