Tenant's parents as Guarantors: correct procedure?

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    Tenant's parents as Guarantors: correct procedure?

    Hi

    I might be taking on a Tenant and her Mum and possibly Dad too will be her Guarantors. Both are working and are home owners.

    I just wanted to make sure I know the correct Procedure for it.

    I have a few questions.

    Do I give the Guarantors and the Tenant a copy of the tenancy agreement to look at first?
    Do I also need to give a copy of the Guarantor agreement to the Guarantors before signing any documents?
    Once they happy with that, Do I need 3 copies of the tenancy agreement, one each for me, Guarantor and tenant.
    Does the Deed of Guarantor, needs one witness per Guarantor?
    And can I use one Guarantor agreement with both Guarantors on it?

    I hope I have covered everything. Please advice, if I need to do anything else.

    #2
    Unless a legal person replies with experience in this area, I would see a lawyer to get these questions addressed, including the drafting of the guarantor agreement, the wording of which must not be drafted lightly or without proper examination.

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      #3
      Originally posted by SALL View Post
      Hi

      I might be taking on a Tenant and her Mum and possibly Dad too will be her Guarantors. Both are working and are home owners.

      I just wanted to make sure I know the correct Procedure for it.

      I have a few questions.

      Do I give the Guarantors and the Tenant a copy of the tenancy agreement to look at first?
      Do I also need to give a copy of the Guarantor agreement to the Guarantors before signing any documents?
      Once they happy with that, Do I need 3 copies of the tenancy agreement, one each for me, Guarantor and tenant.
      Does the Deed of Guarantor, needs one witness per Guarantor?
      And can I use one Guarantor agreement with both Guarantors on it?

      I hope I have covered everything. Please advice, if I need to do anything else.
      1. Always let T have a draft of proposed Agreement, whether or not a guarantor (G) is involved.
      2. L and G enter into Deed of Guarantee.
      3. The Deed does not involve T as a party.
      4. The Deed should - ideally- exhibit a copy of the Tenancy Agreement. If not, L must at least let G have a copy; or else how could G know what is being guaranteed?
      5. G should execute Deed, L does not need to (but can), L keeps Deed, G keeps copy of Deed.
      6. If there are two guarantors, G1 and G2 should be jointly and severally liable. Both can execute same Deed.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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