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I hear that most guarantees in commercial real estate will be full vs partial, and this Good Guy Clause can in fact allow a tenant to terminate early, though it's not common. To my understanding, this Good Guy Guarantee allows the tenant to be released from the contract if his or her business goes under, but he or she surrenders the lease to the landlord in broom swept condition. And the tenant can do this with advance notice, say 3 or 4 months on average.
However, to my understanding if the tenant exercises the Good Guy Guarantee, they'll still have to pay all of the previously due rent, and they always give up their security deposit. And maybe the broker may even have to give commission back?
However, to my understanding if the tenant exercises the Good Guy Guarantee, they'll still have to pay all of the previously due rent, and they always give up their security deposit. And maybe the broker may even have to give commission back?