Property Management
A NC commercial lease with a 'personal guarantee' requires:
AThe landlord to personally guarantee the tenant's business success
BA principal or individual to personally guarantee payment of rent and lease obligations if the business entity tenant defaults✓ Correct
CBoth parties to guarantee the lease to a third party
DThe guarantor to take over operations of the business
Explanation
A personal guarantee requires an individual (often the business owner) to personally accept liability for the lease obligations if the business entity cannot fulfill them, providing the landlord with additional security.
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Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Earnest MoneyA 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.
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