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ARTICLE · 13 AUGUST 2025

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Is A Witness Required For Personal Guarantees Or Signatures?

Gardiner Roberts LLP
Gardiner Roberts LLP
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When lending to corporations, commercial mortgage lenders often require personal guarantees from directors, shareholders, or beneficial owners.

CanadaFinance and Banking
Zev Zlotnick
Zev Zlotnick
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When lending to corporations, commercial mortgage lenders often require personal guarantees from directors, shareholders, or beneficial owners. But a common question arises: must these guarantees be witnessed to be enforceable in Ontario? The same can be applied to any time an individual signs a loan document in their capacity as an individual (and not on behalf of an entity).

The General Rule is that no witness is required.

In Ontario, a personal guarantee signed by an individual is generally enforceable without a witness, provided it is supported by consideration (i.e. something of value, such as a loan or financial accommodation to the principal borrower). The guarantee is treated as a simple contract governed by the common law of contract.

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