Guarantor Form

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    Guarantor Form

    Hi,

    Could someone point me in the direction of a good guarantor form online? I found this one, a couple of the conditions sound a bit iffy to me, but your opinions greatly appreciated. These are the clauses...

    1. The Landlord agrees to let the Property to the Tenant(s). In consideration of this, the Guarantor agrees to act for the Tenant(s) should he/they fail, for any reason, to meet the financial commitments arising from the Tenancy Agreement entered into in respect of the Property.

    2. This Guarantor Agreement refers to the current tenancy being undertaken and any extension or renewal of that tenancy. All references to the Landlord herein shall be deemed to include the Landlord's Agent or any person authorised to act on the Landlord's behalf.

    3. The Guarantor undertakes to pay to the Landlord from the date of this Agreement from time to time the Rent within 10 days of receipt of a written demand from the Landlord or his Agent addressed to the Guarantor if the Tenant following demand has not paid the amount being demanded when it was due under the Tenancy Agreement.

    4. The Guarantor shall pay and make good to the Landlord on demand all reasonable losses and expenses of the Landlord incurred as a result of default by the Tenant in the performance or observance of the Tenant's covenants under the Tenancy Agreement. Any failure of the Landlord in demanding or collecting the Rent when it falls due, and any time to pay which may be given to the Tenant by the Landlord shall not release the Guarantor or in any way affect the liability of the Guarantor under this agreement. Should the Guarantor die during the currency of this agreement, the Guarantor's estate will be liable as surety and co-principal debtor.

    5. Where the Rent, or any portion of it, is paid by housing benefit or other benefit scheme, the Guarantor agrees to pay the Landlord or Agent for the amount of any claims arising from overpayment, which may be made by the local authority in relation to the specified Tenant(s). Such overpayments may occur at any time, either during the tenancy or within six years thereafter.

    6. If the tenancy is for a fixed term, then this guarantee applies for the whole of the term and is not revocable during that term.

    7. If the tenancy is periodic or has become periodic by agreement or the operation of law, then this guarantee may be terminated by written notice by the Guarantor subject to the Tenant vacating at the earliest legally permissible date required for possession. If the Tenant fails to vacate on this earliest date then the guarantee shall continue until the Tenant vacates.

    8. It is agreed that there shall be no right to cancel this agreement once the tenancy has begun and the Consumer Protection (Distance Selling) Regulations 2000 shall not apply in this case.


    Also I read somewhere that there has to be the word "deed" on the guarantor form, for it to become fully enforceable. Is this correct?

    Many thanks

    Nathalie

    #2
    Clause 1 does not sound right. Let's deconstruct it; inserted numbering refers to my notes, ahead of the clause.


    1. Why does this sound like a clause from a letting clause? The Guarantee is entirely separate.
    2. If the Guarantee really is in consideration of the Letting, it does not need to be a Deed. As the relationship is uncertain and unreliable, however, it's best not trying to construct a 'consideration' at all.
    3. "Act for"? What does that mean? What is G obliged to do?
    4. Is G guaranteeing all T's obligations? If so, the reference to 'financial commitments' is wrong; if it's right, to precisely which obligations of T does it apply?

    The Landlord agrees to let the Property to the Tenant(s)[1]. In consideration of this[2], the Guarantor agrees to act for[3] the Tenant(s) should he/they fail, for any reason, to meet the financial commitments[4] arising from the Tenancy Agreement entered into in respect of the Property.
    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).

    Comment


      #3
      Thanks for the clarifications, I have been recommended this Guarantor form now from about 3 people...

      http://www.letmerlin.co.uk/_forms/11...-Unlimited.pdf

      Definitely looks better, what do you think?

      Comment


        #4
        I would like to see the TA attached to the deed and the terms of the deed clearly state that the TA is attached.
        PAUL GIBBS, solicitor, Jacobs & Reeves. My comments on this forum are correct to the best of my knowledge and belief. No responsibility or liability is accepted by reason of reliance upon such comments. This disclaimer would not apply to direct clients of Jacobs & Reeves where there is a valid retainer in place and I would be happy to confirm any advice if formally instructed. . Jacobs & Reeves now offer a fixed fee possession service.

        Comment


          #5
          Originally posted by Nathalie View Post
          Thanks for the clarifications, I have been recommended this Guarantor form now from about 3 people...

          http://www.letmerlin.co.uk/_forms/11...-Unlimited.pdf

          Definitely looks better, what do you think?
          As this is a copyrighted form, would you be able to make even a minor alteration?

          Would a separate sheet saying they had received a copy of the TA and signed by the Guarantor be just as acceptable?

          Incidentally would it have to be the TA with all signatures or just an identical copy for reference, without any signatures?

          Comment


            #6
            The first precedent has an air of having been cobbled together by a non-lawyer. If it was cobbled together by a lawyer he needs to have a sensitive part of his anatomy squeezed between two volumes of the Encyclopaedia of Forms and Precedents. I commented on the RLA precedent here: http://www.landlordzone.co.uk/forums...t=24404&page=2

            How the law of copyright relates to legal precedents is an interesting question. First, it is in the very nature of a legal precedent that it will be copied. Secondly, no precedent should be regarded as set in stone and followed slavishly. A precedent should only ever be a guide. There is no "one size fits all". Anyone offering a precedent ought to accept that changes may be needed to suit the requirements of the parties to the document. Accordingly, if you reserve copyright to a precedent the best you can be saying is that you will not accept anyone else publishing it as a precedent.

            Comment

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