What happens if my personal guarantee covers renewals too, even ones after I sell the business?

This is one of the more damaging things a departing tenant can overlook. Some personal guarantees are drafted broadly enough to cover not just the current lease term, but any renewal, extension, or even a new lease negotiated afterward — meaning that if the wording is broad enough, you could remain exposed for rent and other obligations years after you've sold the business and long after the original term you actually guaranteed has ended.

Whether your guarantee reaches that far depends entirely on its specific wording — some are limited strictly to the initial term, while others are drafted to extend automatically through renewals unless the guarantor is expressly released. Sellers often assume a guarantee dies with the original lease term; a broadly worded guarantee doesn't work that way.

Before you agree to a sale, have your actual guarantee document reviewed line by line, not just the lease. A Treadstone business lawyer can identify whether it extends to renewals and negotiate a hard release covering any future term, not just the current one.