Guarantor question, please help with some objective advice!

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    Guarantor question, please help with some objective advice!

    My sister is currently studying in UK, and she has asked med if I could help and be her guarantor.
    However I am very vary of such things, and wonder what legal power such "contract"
    I have provided a copy of the paper they want me to sign, and they also require signature by a witness.

    Please any advice would be greatly appreciated.


    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.



    (c) The Letting Centre, 2005
    Page 2 of 3 G01.txm



    SIGNED by GUARANTOR:

    __________________________________________________ _________________________


    DATE: __________________


    SIGNED by WITNESS:


    Name: __________________________________________________ ______________________

    Address: __________________________________________________ ______________________

    __________________________________________________ ______________________

    __________________________________________________ ______________________


    Witness Signature: __________________________________________________ ______________________


    SIGNED by the Landlord / Agent :


    __________________________________________________ ____________________________________

    XXXXXXX (agent for Landlord)
    XXXX
    XXXXXXXX

    #2
    Some of my questions are about the Renewal period? And also no amount of rent is written in my contract.
    For me the contract also seems very one sided, from letting agent/landlords view.
    Thanks for advice.

    Comment


      #3
      The document you have transcribed is a guarantor agreement, and fails the basic test of whether it is a valid contract because there is no benefit to you.

      A decent solicitor could rip this to shreds in court.

      To be watertight, it would have to be a "Deed of Guarantee" 'executed as a deed'. Just the simple words "this document is executed as a deed" is all it would take. But if the agent / landlord don't know that - that's their problem.

      Comment


        #4
        Originally posted by jabekken View Post
        Some of my questions are about the Renewal period? And also no amount of rent is written in my contract.
        For me the contract also seems very one sided, from letting agent/landlords view.
        Thanks for advice.
        No amount of rent will be specified because you are supposedly guaranteeing an agreement (and it's continuation) where the rent is changeable.
        The contract IS one sided, it's purpose is to protect the landlord - it is for their benefit, not yours.

        Comment


          #5
          So is the conclusion of this that if I do sign this agreement, which is required for my sister to get the apartment, that they would not be able to legally claim anything from me? As you mention is not a valid contract, I am not happy to be guarantor, I got the document by email yesterday, and they are pressing me sign it quickly, as the tenancy is supposed to commence on Monday. So I will be scanning back the document by email to them signed by me. Should I mention that the agreement is very one sided, or just shut up about that?

          Thanks for your advice so far.

          By the way, I forget to add the first part of the document:

          "General Notes

          This is a contract by which the Landlord agrees to grant a tenancy in consideration of the Guarantor’s agreement to act as surety for that tenancy agreement.

          • This agreement is for use with the letting of residential property and their associated tenancies. As such, this is a legal document and should not be used without adequate knowledge of the law of landlord and tenant. Practitioners are advised to read the guidance notes that accompany this agreement.
          • It is essential that a copy of the proposed tenancy agreement is attached to the Guarantor Agreement and that the Guarantor is given adequate opportunity to read both documents before signing.
          • If the guarantor is not able to be present, in person, to sign the guarantee it is recommended that the guarantee is signed at least seven days before the tenancy is due to start.
          • This agreement has been drawn up after consideration of the Office of Fair Trading’s Guidance on Unfair terms in Tenancy Agreements."

          Comment


            #6
            Actually there are a couple of more points I just discovered. I have not been sent the tenancy agreement by agent/landlord. So I have had no chance to read this.

            Also I have not received any guidance that is mentioned in the start to accompany this agreement. No fixed period is mentioned either.

            And I also find the last point to seem like bit of a joke, after what you have told me here:

            This agreement has been drawn up after consideration of the Office of Fair Trading’s Guidance on Unfair terms in Tenancy Agreements.

            But I do not have much experience with this, I just want to secure my position in the worst case scenario, which I do not expect to happen, but just in case!

            Comment


              #7
              I am not a lawyer, but I have been a member of this forum for 3 years and read many 'guarantor' threads.

              I believe that what I have told you is 100% - but the guarantee will be valid until it is challenged in court (presumably by you) and a judge agrees it is invalid.

              No guarantees!

              Have you seen the tenancy agreement? If not, write on the signed copy - AST not seen.

              If you want your sister to get this property the reality is that you have to sign.
              Hopefully, she will pay all she is due to pay and the issue of the guarantees validity will never raise it's ugly head.
              If she defaults, she will get a CCJ no matter how valid the guarantee is.
              If she defaults, and they come after you, that's when it becomes an issue.
              Fingers xed it will never even come to that.

              Comment


                #8
                Yes I have not seen the Tenancy Agreement, it has not been mailed to me either. Not sure what guidance notes should be, but this hasn't been sent to me either. So will note both of this on the return of the agreement.

                It does point out in the heading of the agreement:
                It is essential that a copy of the proposed tenancy agreement is attached to the Guarantor Agreement and that the Guarantor is given adequate opportunity to read both documents before signing.

                I also believe there will be no issues, just don't want to be responsible for loads of unfair terms, in case I have not understood the agreement properly.

                However if I understand correctly, this contract would probably very easily be deemed unfair, as I would not have know what I have signed under for. I am assuming that the agent has the responsibility to provide me this.

                I think personally there will be no issues, but just in case. thanks again

                Comment


                  #9
                  I am struggling to believe that some landlord is actually paying this incompetent agent good money to issue 'legal' documents as full of holes as this Gruyere cheese of a guarantor agreement.
                  'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                  Comment


                    #10
                    Yes, the fact that you have not had sight of the agreement dooms it in the eyes of all but the most pedantic of judges (who may say you shouldn't have agreed without reading it).

                    But then you have the fall-back of it not being a deed.

                    Comment


                      #11
                      Originally posted by mind the gap View Post
                      I am struggling to believe that some landlord is actually paying this incompetent agent good money to issue 'legal' documents as full of holes as this Gruyere cheese of a guarantor agreement.
                      Take it you agree with my understanding then MTG?

                      Comment


                        #12
                        Originally posted by Snorkerz View Post
                        Take it you agree with my understanding then MTG?
                        Oui, mon capitaine!
                        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                        Comment


                          #13
                          Is there any reference to Deed(s) in the agreement?

                          Comment


                            #14
                            Originally posted by natt48 View Post
                            Is there any reference to Deed(s) in the agreement?
                            You can find out quite easily by reading it. Does the word 'Deed' appear in it?
                            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                            Comment


                              #15
                              Originally posted by mind the gap View Post
                              You can find out quite easily by reading it. Does the word 'Deed' appear in it?
                              I thought the entire contract was quoted the first time? But then later was additional information posted

                              Comment

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