Guarantor Agreement: About to sign...

[helios2k8]

Hi,

 

Firstly I'd like to say Hi, this is my first post so please be gentle...

 

I'm about to sign on the agreement, I've been reading around and I was wonder if anyone would mind taking a quick look and letting me know how it looks. I've read that the word deed is important to have on it, however, it is not present except in the document title and given I am to fax this back that will be lost. What are the implications?

 

The agreement is thus:-

In consideration of your agreeing to grant a Tenancy for the premises known as:

 

ADDRESS

 

Some place, somewhere...

 

to: Mr X

 

for a rent of £575.00 per calendar month, for a period of 6 months and thereafter month by month from 26/04/2008

 

I, helios2k8 hereby agree to be answerable to you for any and all rent reserved by the Tenancy Agreement which the Tenant shall be liable to pay to you. We shall also be answerable to you for any other duty under the Tenancy Agreement for which the Tenant shall be liable. We agree that I will pay the rent, in the event that the tenants shall not pay the same, in accordance with the Tenacy Agreement, until the end of the term of the Tenancy. We agree to pay all charges made against the ‘dilapidation deposit’ during the term of the Tenancy within 30 days of receipt of invoice, in the event that the tenants shall not pay the same in accordance with the Tenacy Agreement.

 

This guarantee is a continuing guarantee and security and our liability under it shall not be affected by your giving time or any other indulgence to the Tenant.

 

 

Can anyone help and say if there's anything in there I should be cautious of, etc...

 

Many thanks guys!

[helios2k8]

Guys,

 

I appreciate it's bad (n)etiquette to bump my own thread so soon but I had a particular question I'd like to add.

 

I've been reading the following URL: The Letting Centre - Factsheet 34 - Distance Selling Regulations 2000

 

This very much applies to me, I'm conducting this at a distance.

 

My hypothetical question is, since my agreement makes no mention of the DSR, once my brother signs the tenancy agreement.... If I cancel my guarantor agreement under the DSR would that void the tenancy agreement? (I also suspect since there's no mention of my right to cancel then it doesn't provide all required Written Information so I can cancel for up to 3 months and 7 days?)

 

Like I said, it's hypothetical.... but, yaknow.....

[nufsaid]

Hiya Helios welcome to cag

I am not sure about your problem myself but wnated to say hiya.

I am sure some bright bod on here should be along, be patient it's a busy day today what with the bank charges case.

Good luck.

NS

[Aequitas]

It makes a change for someone to seek advice before signing a guarantee.

 

Do not rely on the Distance Selling Regulations applying.

 

There are various reasons why this form may not be effective as a guarantee, but I will not go into them as they are not watertight.

 

Assuming therefore that the guarantee would be effective if you signed it, you would be best advised not to sign it. This is because it is not limited to time or amount - in other words it is open-ended. If you really want to sign then insist (a) it is limited to any default arising during the first six months (b) that it is limited in amount to, say, six months' rent and © that the landlord may not call on the guarantee until the deposit is used up.

[helios2k8]

Thanks for your reply.

 

I noticed it doesn't specify deed and that could be one of the non-watertight things you mentioned.

 

I just happen to be between a rock and hard place... on the one hand I've got this really horrid open ended unlimited guarantor agreement and on the other I've got my brother who will have nowhere to live unless this form is signed for them to sign their tenancy on saturday. I only received this form today so it's all very high pressured and must be done soon with quite possibly no room for the guarantor agreement to be renegotiated!

 

Obviously that's kinda irrelevant for this forum... I might ask the them to think about rewording the agreement but at the end of day I'll probably end up signing it - unfortunately.

 

So when I'm back in a few months, can we explore those other non-watertight points?

 

I guess worst comes to worst (from what I read in another thread) I can give reasonable notice once it turns periodic.

 

Advice appreciated, but unfortunately, probably won't be heeded... :-|

[Aequitas]

Looks like you need to play a game of poker. The agent may be taking advantage of the situation to get a guarantee, but at the end of the day, the landlord wants to let.

 

The really important thing is not to enter into the guarantee unless you can afford to.

[helios2k8]

Well, thought I'd update. I put on my best poker face/voice but they wouldn't budge so unfortunately I've signed the agreement as-is.

 

(I can afford to pay so I'm not particularly worried at the end of the day, plus, I know my brother has in savings enough to pay the rent for at least 12 months if not more. Nevermind income.)

 

One thing I am curious about though, I managed to get a copy of the AST agreement:-

 

I noticed that I'm named under section 1.1 (Parties):-

 

1.1.4 The Guarantor

Name: helios2k8

Contact Address: CAG forum

Contact Telephone Number: 01234567890

Contact Fax Number:

Contact Email Address: [email protected]

...and then section 8 gives some guarantor stuff:-

 

8 Guarantor

 

8.1 In consideration for the Landlord granting the Tenant a tenancy of the Property, the Guarantor agrees to pay the Landlord and the Landlord’s Agent for any reasonable losses suffered as a result of the Tenant failing to fulfil any of his obligations under this agreement or failing to pay Rents or other monies lawfully due.

 

8.2 The Guarantor agrees to pay, on demand and in full, any overdue Rent or other monies lawfully due under this agreement for the full Term and until vacant possession is given to the Landlord.

 

8.3 The Guarantor agrees to make payments lawfully due under clause 8.1 or 8.2 even after the Tenant has yielded up possession.

 

8.4 If this contract is a “distance contract” as defined in the Consumer Protection (Distance Selling) Regulations 2000, then, subject to the required information having been provided to the Guarantor, the 7 day “cooling off” period will cease immediately the provision of the service commences, in accordance with regulation 8(3) of the above regulations. This means that you will be committed to this guarantor agreement once the Tenant takes on the Property.

Then there is space underneath for the landlord's, tenants', guarantor's signature.

 

So my question is they have not asked me to sign this page of the tenancy agreement, so does my agreement given in the first post bind me to the terms set out above in section 8 given I haven't been asked to sign the actual tenancy agreement ?

 

(Is there anything to bear in mind if they ask me to sign the tenancy agreement after the tenancy as commenced and the landlord & tenants have signed...?)

 

Many thanks!

 

Sorry if I'm overloading with questions, I just like to understand where I'm at...

[Aequitas]

Only the guarantee you signed will have any application.