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Posted at October 30, 2018

Getting a Joint Surety

Joint Surety from a Garantor to the Tenant’s financial obligations

 

A Guarantor stands surety for the Landlord and guards against a possible breach of his tenant to its payment obligations.
A Guarantor is a person who undertakes to pay the lessee's debts such as rent, maintenance charges or rental degradations, if the latter does not settle them himself. It is mandatory the the deed of guarantee be written.

Content of the Joint Surety 

 

The Joint Surety of the Guarantor may be concluded by an authentic deed; however, most of the time this document is written under private seal.

Today, for the guarantee to be valid, the surety document must include handwritten stipulations, which complicates its drafting, torments the guarantor and adds to the workload of the people involved in its drafting.

These mentions are:

 
  • the rent in figures and letters
  • rent’s annual review conditions
  • the maximum amount of surety bond (Otherwise, the guarantor commits himself to the totality of the tenant’s debts)
  • a statement that makes it clear that the guarantor is aware of the nature and extent of his commitment

  • the reproduction of article 22-1 of the law of July 6, 1989 see the law

  • the nature of the commitment (simple or joint guarantee)

Explanation: A simple guarantee only binds the Guarantor if the lessee is absolutely unable to pay his debts, while a joint guarantee allows the landlord to request the Guarantor to insure payment from the first unpaid rent without seeking to know the solvency of his tenant.

Excellent news:

 

As soon as the Elan Law (adopted October 16, 2018) comes into force, the content of these mentions will no longer have to be manuscript! The bond will be in the form of a standard model, or even dematerialized.

Precision: A commitment period may also be defined; in this case, the Guarantor can not withdraw his surety before term.

Who can vouch as a Guarantoor?

 

Anyone in the family, friend or acquaintance can vouch. However, in order to fulfill his commitment, a Guarantor must have sufficient income (between 3 and 4 times the amount of the rent). The owner may ask the Guarantor for photo identification and his last 3 payslips, but he is not legally entitled to request bank statements from the Guarantor.

Beware!

 

If the owner has taken out insurance for unpaid rent, the law forbids him to ask for a “joint surety” from his tenant.
The unpaid rent insurance is a safe solution, but it involves a fee for the owner (between 2.75% and 4.5% of the amount of rent including charges, depending on the insurance company).

Please find the letter template on Paris Rental's website

This template is for anyone who intends to become a garantor, simple or solidary, to anyone else.

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