Getting a Joint Surety in Paris,France

A guarantor provides financial security to the landlord in the event that the tenant fails to meet their payment obligations.

The guarantor is a person who agrees to pay the tenant’s debts, including unpaid rent, rental charges and the cost of certain rental damages, when the tenant does not pay them.

The guarantor’s commitment must be formalized through a written deed of guarantee.

What Is a Joint Surety?

A joint surety is a written commitment through which a guarantor agrees to cover the tenant’s financial obligations if the tenant defaults.

The deed may be established as an authentic instrument. However, in most rental situations, it is prepared as a private agreement signed directly by the parties.

Required Content of the Deed of Guarantee

The deed of guarantee should clearly describe the guarantor’s commitment and the financial obligations covered by the guarantee.

It should notably include:

• the amount of the rent written in both figures and words;
• the conditions governing the annual review of the rent;
• the maximum amount covered by the guarantee, when a limit is intended;
• a statement confirming that the guarantor understands the nature and extent of the commitment;
• the nature of the guarantee, whether simple or joint;
• the duration of the guarantor’s commitment, when it is concluded for a fixed period.

When no maximum amount is specified, the guarantor may be responsible for all debts covered by the agreement, subject to the applicable legal provisions.

Simple Guarantee or Joint Guarantee

The consequences of the guarantor’s commitment depend on whether the deed establishes a simple guarantee or a joint guarantee.

The Simple Guarantee

Under a simple guarantee, the landlord generally seeks payment from the tenant before requesting payment from the guarantor.

The guarantor is therefore called upon when the tenant is unable to settle the outstanding debt and the required procedures have been followed.

The Joint Guarantee

A joint guarantee offers the landlord more direct protection. It may allow the landlord to request payment from the guarantor as soon as the first unpaid rent occurs, without first having to establish that the tenant is insolvent.

The precise scope of this obligation depends on the wording of the deed and the applicable rental regulations.

Duration of the Guarantor’s Commitment

The deed of guarantee may define a fixed commitment period.

When the guarantee is concluded for a specified duration, the guarantor generally cannot withdraw from the commitment before the agreed end date, unless otherwise provided by law or by the agreement.

The duration of the guarantee should therefore be clearly stated and carefully reviewed before the document is signed.

Who Can Act as a Guarantor?

A family member, friend or acquaintance may act as a guarantor for a tenant.

To fulfil this commitment, the guarantor should have sufficient and regular income. Landlords commonly assess whether the guarantor’s income represents approximately three to four times the monthly rent.

The landlord may request documents allowing them to verify the guarantor’s identity, employment situation and financial resources.

Documents That May Be Requested

The guarantor may notably be asked to provide:

• a valid photo identification document;
• proof of address;
• proof of professional activity;
• recent payslips or other evidence of regular income.

The landlord must respect the legal rules governing the supporting documents that may be requested from a tenant or guarantor.

Joint Surety and Unpaid Rent Insurance

Landlords should pay particular attention to the relationship between a personal guarantee and unpaid rent insurance.

In certain rental situations, a landlord who has taken out unpaid rent insurance may not also request a personal guarantor, except in specific cases provided for by law.

Unpaid rent insurance can provide valuable protection, but its cost is borne by the landlord. Depending on the insurer and the guarantees selected, the premium may represent approximately 2.75% to 4.5% of the rent, including charges.

Points to Check Before Signing a Deed of Guarantee

Before signing, the guarantor should carefully verify:

• the identity of the tenant and landlord;
• the address of the rented property;
• the monthly rent and charges;
• the maximum guaranteed amount;
• the duration of the commitment;
• whether the guarantee is simple or joint;
• the conditions under which the landlord may request payment.

A guarantor should never sign a deed without fully understanding the potential financial consequences of the commitment.

Why Is a Written Guarantee Important?

A properly drafted deed of guarantee protects the landlord while clearly informing the guarantor of their responsibilities.

It helps prevent misunderstandings by defining the debts covered, the duration of the commitment and the procedure to follow if the tenant fails to pay.

Paris Rental provides a letter template for individuals who intend to act as a simple or joint guarantor for a tenant.

Photo by Thought Catalog on Unsplash.

Editor: Siyi CHEN