Personal Guaranty to Use When Your Client is an LLC or Corporation
Below is suggested language to help attorneys of InterNACHI members draft a personal guaranty. As we all know, anyone can set up a corporation in a few minutes. Often, commercial buyers set up a separate corporation for each property they buy. If you are performing an expensive inspection for Bob's Investment Company, LLC and are worried that you won't get paid, you could demand that Bob himself personally guarantee payment. This personal guaranty works well with both InterNACHI's Residential Inspection Agreement and InterNACHI's Commercial Inspection Agreement.
If CLIENT is a corporation, LLC, partnership, or other artificial entity, the undersigned person hereby personally and unconditionally guarantees punctual payment by CLIENT as required by this Agreement. The undersigned guarantor waives diligence, demand for payment, extension of time for payment, notice of acceptance of this guaranty, and indulgences and notice of every kind, and consents to any and all forbearances and extensions of the time for payment or performance under this Agreement and to any and all changes in the terms of this Agreement. INSPECTOR may enforce this guaranty without first resorting to or exhausting other remedies provided by the Agreement or the law. Guarantor agrees to pay all reasonable costs and attorneys’ fees incurred by INSPECTOR in enforcing this guaranty. Guarantor signs this Guaranty in consideration of INSPECTOR’s willingness to enter into this Agreement with CLIENT.