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A lease guarantor is an individual who agrees to ensure that a lease is fulfilled. If the tenant fails to comply with the lease terms, the guarantor becomes financially responsible. Typically, this occurs when a small business, represented by its president or an officer, signs a lease with a shopping center. The landlord often requires a guarantor, usually the business owner, to sign in their personal capacity. This arrangement safeguards the landlord’s financial interests, ensuring they receive rent even if the corporation fails, goes bankrupt, or ceases operations.
