Guarantor cooling off period

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  • Guarantor cooling off period

    Does anyone know if there is a cooling off period for a guarantor? I know there is not one for tenancy agreements.

    I have had a tenant move into a property with a Guarantor. Now they are in, the Guarantor says they no longer want to do it and can change their minds using the 14 day cooling off period.

    The forms were issued in the post - I have read this may make a difference to if they were signed in person.

  • #2
    Unless the transaction was wholly conluded by a "means of distance communication" the right to cancel under the Consumer Protection (Distance Selling) Regulations 2000 does not apply. An indication of what constitutes a "means of distance communication" can be found in Schedule 1 to the Regulations, which can be found here.

    Accordingly if the transaction was negotiated "in the normal way" and all that happened was that the documents were sent in the post, there is no right to cancel.

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    • #3
      I am sorry, but I am finding that a little unclear.

      The whole 'transaction' was carried out through the post. The tenant provided the Guarantors details and I wrote to them with the contract etc.

      Is that a "means of distance communication" or was it negotiated "in the normal way"

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      • #4
        That's a good one:

        Tenant and guarantor agree a letting starting in a week's time, and tenant moves in. Then guarantor attempts to invoke 14 day cooling off period.

        It's a lot of nonsense Powell. There is no cooling off period for guarantors.

        This looks more like attempted fraud to me.

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        • #5
          It is a good one. Just when you think you ave heard it all........

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          • #6
            That may complicate it.

            I am no expert on the regulations but have just had a quick run through them. Before considering the matter in detail I have a question: in what form did the guarantor give notice of his intention to cancel?

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            • #7
              This thread popped up at the bottom which seems relevant:http://www.landlordzone.co.uk/forums...rom-the-office

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              • #8
                I received a letter stating that they no longer wish considered as a guarantor.

                I will also mention, I do not think it has any relevance, that the Guarantor initially was told that he must be a homeowner. When the signed contract was returned, I checked on the land registry to see if he was and it is his partner that owns the property. I then contacted them to be a joint Guarantor and they refused - the tenant is the daughter of the non-homeowner only. I agreed to the father to be the sole guarantor.

                Today's letter states that they did not give their consent to 'search the property'. As far as I am aware, a Land Registry search is open to anyone and no permission is required.

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                • #9
                  Does the right to a cooling off period, assuming the right to cancel hadn't been specifically included in this agreement, not fall by the wayside in the event that the tenancy has already begun as long as the guarantor had been advised of such?
                  My advice is not based on formal legal training but experience gained in 20+ years in the letting industry.

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                  • #10
                    I just wanted to check that the notice was in writing as required.

                    The obvious point to make is that if the notice was effective there is nothing you can do about it. I suggest writing to the guarantor as follows:

                    Thank you for your letter of...

                    I do not accept that the Consumer Protection (Distance Selling) Regulations 2000 apply to your guarantee. If [insert tenant's name] does not comply with his obligations under the tenancy agreement I shall look to you to meet your obligations under the guarantee. If you fail to do so the court will have to decide the issue.


                    The following points occur to me:

                    1. Is a guarantee a contract at all? It could be argued that the essence of a contract is that it imposes mutual obligations. A guarantee is very much one way traffic.

                    2. If it is a contract, is it one to which the Regulations apply? The contract has to be one "concerning goods or services". What goods or services are you supplying to the guarantor?

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                    • #11
                      Beware folks about just having one parent as guarantor. I had a delinquent tenant many years ago who got just her father to guarantee, even though her mother was alive. The father had been diagnosed with terminal cancer, and the tenant calculated (correctly) that her father would be dead by the time I got round to asking him for money.

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                      • #12
                        Originally posted by Lawcruncher View Post

                        1. Is a guarantee a contract at all? It could be argued that the essence of a contract is that it imposes mutual obligations. A guarantee is very much one way traffic.

                        Didn't we have this discussion before? Regarding the consideration given to a guarantor which (I think) ended up with someone saying that the fact that the tenant got the property was consideration enough.
                        I offer no guarantee that anything I say is correct. wysiwyg

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                        • #13
                          Originally posted by jta View Post
                          Didn't we have this discussion before?
                          We did indeed.

                          Originally posted by jta View Post
                          Regarding the consideration given to a guarantor which (I think) ended up with someone saying that the fact that the tenant got the property was consideration enough.
                          I did not agree with them.

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                          • #14
                            Maybe somebody could bump it, I can't find it.
                            I offer no guarantee that anything I say is correct. wysiwyg

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                            • #15
                              Originally posted by jta View Post
                              Maybe somebody could bump it, I can't find it.
                              It takes me ages to find anything so I am not looking for it.

                              Why are the search facilities on forums so useless?

                              Comment

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