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Ely
Ely, Counselor at Law
Category: Legal
Satisfied Customers: 101939
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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I am a start-up business partner considering whether we need

Customer Question

I am a start-up business partner considering whether we need to engage a lawyer for reviewing a lease contract
JA: Because laws vary from place to place, can you tell me what state the property is in?
Customer: Texas, Houston outskirts
JA: Has anything been filed or reported?
Customer: not sure what you mean with filed or reported. please clarify
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 5 months ago.
Category: Legal
Customer: replied 5 months ago.
Our question: we have already negotiated and agreed to the commercial terms. Now we need to know if the legal terms will hurt us.
Expert:  Ely replied 5 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Can you attach the contract and I can do a quick overview to see if there are any red flags.

Customer: replied 5 months ago.
Mostly I just want to know about the guaranty and remedies language.
Expert:  Ely replied 5 months ago.
Sure. Anything specific, or, simply if there are any red flags?
Customer: replied 5 months ago.
just looking for red flags.
Expert:  Ely replied 5 months ago.
Okay. One last question. Which party are you - Landlord, Tenant, Guarantor?
Customer: replied 5 months ago.
tenant and guarantor
Expert:  Ely replied 5 months ago.

Okay. Please give me a moment to formulate my answer.

Expert:  Ely replied 5 months ago.

Okay.

As for the guarantee, do understand that if the company defaults, the landlord can go after the guarantor personally. In fact, the landlord does not even have to file anything against the company and can pursue this against the guarantor only. This contract essentially voids the corporate protection the LLC provides, making the individual a co-signer. So this is common, but still harsh. Be careful.

As for the remedy, it gives the landlord the right to essentially walk in once the tenant defaults, break through the locks, and store the property the tenant owes at the tenant's expense, and also imposes a 10% late fee.

These are pretty harsh terms overall for the tenant.

I hope this helps and clarifies. Please use the SEND button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of THREE OR MORE STARS and then click FINISH to submit that rating, as this is how experts get credit for our time. Rating my answer the bottom two stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating (it does not cost anything extra to rate).

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