Can I walk away if I can’t pay the rent on commercial lease and did not give a personal guarantee?

UPDATED: Dec 5, 2011

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Can I walk away if I can’t pay the rent on commercial lease and did not give a personal guarantee?

I am only 25% owner of that S Corp and other 75% is owned by my partner. Also I realized that my name and SSN is incorrect on the lease.

Asked on December 5, 2011 under Real Estate Law, North Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Good question. If a corporation that you have an interest in as a shareholder cannot continue payments on a commercial lease where you did not sign a personal guarantee as to the lease, you can cease paying on the lease through your corporation and most likely you will not suffer and personal liability under the lease.

However, to have a better idea of your situation, I suggest that you consult with a landlord tenant attorney who does commercial leases. The concern is that if your personal name is on the lease as well as your social security number, there is a chance that you may have signed the lease personally and be obligated under it individually.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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