A real estate lease personal guarantee form is a document a tenant issues to their landlord as part of the lease contract. This form acts as a form of legal insurance to protect the landlord from rent loss, damages to their property, or any fees associated with their property. The document enforced the rental agreement between the two parties.
Release of personal guarantee: Used to release the guarantor at the completion of the lease or if the guarantor to be released for other reasons.
Importance of the guarantee form
Although the real estate lease personal guarantee form isn’t a substitute for the Assured Shorthold Tenancy Agreement contract, it supplements the tenancy agreement.
The real estate lease personal guarantee form enables the guarantor to guarantee a lease in case the tenant violates the terms of the rental lease agreement. In this respect, if the tenant breaks the contract and fails to pay rent, the guarantor is obliged to cater to the unfulfilled obligations. Thus the co-signer/guarantor is proportionately accountable for the lease just like the tenant.
Who is a tenant guarantor?
A tenant guarantor also referred to as the co-signer, is any individual who volunteers to accept liability in case the tenant fails to meet their obligations based on the tenancy agreement. Thus the landlord can pursue the guarantor to pay tenancy fees if the tenant is unable to meet their responsibility.
In most cases, one chooses their family member or friend to act as their tenancy guarantor. Still, anyone can qualify to be a guarantor as long as the landlord deems the individual to be suitable. Although the landlord can’t choose the guarantor for the tenant, they can deny them tenancy if they consider the particular guarantor to be unsuitable. This will apply if the co-signer/ guarantor has a poor credit score, a low income, or they can’t cover the tenant’s liability. Thus if you consider being a guarantor for any tenant, you must understand the obligations that you must meet and the consequences of neglecting your responsibilities. If possible, the landlord should work with referenced guarantors to ensure they are qualified for the task.
Free real estate personal guarantee form
Q1. Should this form be notarized?
A. Yes, in most cases, landlords request notarized real estate lease personal guarantee forms as part of the documents required for applying for a home. If the form is notarized, it means the signee appended their signature on the form willingly without coercion, and they understood the contents in the form. If your landlord asks for a notarized letter, you don’t have to visit a notary; you can get these services online.
Q2. Can this form be used in court?
A. Yes, a landlord can use this document to institute legal proceedings against the tenant or guarantor. If the landlord wants to evict the tenant from their property, they can use this form to file for a notice of eviction.
Q3. What if the tenant and guarantor fail to pay rent?
A. If both the tenant and guarantor fail to pay rent, the landlord can proceed and evict the tenant besides initiating collection action against the guarantor. This action may include a lawsuit that will affect the guarantor’s credit score.