What is a guarantor?
A guarantor is someone who guarantees the performance of another person’s obligation. In the case of a residential rental agreement, the guarantor is obligated to pay the rent (or other monies owed to the landlord) if the tenant fails to do so. For how long is a guarantor liable for the tenant’s obligations? That depends on the guaranty made. A guarantor may only promise to cover the tenant for the first year, and whatever happens after that is not the guarantor’s problem. Or, the guarantor may promise to cover the tenant as long as the tenant stays in possession of the premises. If you use the to prepare your Residential Lease, you may choose between these two types of guaranties.
A guarantor is someone who pledges that a loan or other type of debt will be paid. Usually, a guarantor agrees to pay or perform another person’s debt or duty should that person fail to do so. The term is most commonly used in reference to financial assistance. A parent who cosigns a student loan for a child could be considered a guarantor – should the child default on his or her debt, the parent would be held liable for the remainder of the loan. Use of a guarantor does not ensure that a loan application will go through, because the guarantor is considered part of the loan application, and his or her credit will be evaluated along with the other applicants. If the lending institution feels that the guarantor cannot make good on the debt, they will not approve the loan. When seeking out a guarantor, it is important to keep this in mind. Generally, applicants use a guarantor if they feel they are unable or unwilling to secure a loan on their own. This might be the case if the applicant
A guarantor is someone who agrees to sign an agreement (most typically a rental agreement) and basically guarantees that if for some reason the tenant cannot pay, the guarantor will make the payments. This most commnoly happens in a college evironment when a student needs to have a parent sign onto the lease as a guarantor so the Landlord feels comfortable that if the student cannot make the payments, the parents will.
