What is a good guy clause?

Posted on May 5 2012 at 12:20:09 AM in Real Estate

“As long as I pay the rent, I can leave whenever I want, that’s a Good Guy Clause, right?” That statement is wrong, and it’s a common misperception. 

A Good Guy Clause is a personal guarantee that protects you when you break the lease. However, typically there are certain conditions that a landlord will want you abide to. 

Firstly the landlord will probably make you guarantee that you’ll stay in the space for a set amount of time, for example he’ll want you to guarantee at least two years of a five year lease. 

The landlord will request that you also give him a notice that you’ll be leaving the space, so for example he might require that you give him a 3 month notice so it gives him time to market the space. 

The landlord will want you to restore the space back to the original condition.

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  Article Information
Created: May 5 2012 at 12:20:09 AM
Updated: May 5 2012 at 12:20:09 AM
Category: Real Estate
Language: English