Guarantor: what is it? What are the responsibilities?

A guarantor is the name given to an important party in a rental agreement, guaranteeing that payment will be made in case of eventuality.

What is Guarantor?

The guarantor is the individual who will be responsible for paying all unpaid expenses of a tenant or borrower under a lease in the event that the tenant defaults.

Therefore, when renting a property or taking out a loan (depending on the type of loan and financial institution that is releasing the credit) the person must present a guarantor.

What is the role of the guarantor?

Thus, it is clear what is a guarantor and how the figure of this person becomes essential to provide greater security when closing a contract.

Thus, to perform this function for a lessee , for example, this person must have a property paid off in their name in the same city in which the lessee intends to rent the property.

In addition, additionally, there are other criteria, such as being over 18 years old and proving sufficient income to bear all possible liabilities.

What are the types of guarantor?

The role of the guarantor will depend on the type of contract, which can be:

  • Solidarity;
  • Subsidiary.


First, in the solidary contract , it is the person who takes on this role who becomes responsible for the debt as soon as it occurs.


On the other hand, in the subsidiary contract , it is the guarantor who guarantees what is usually called the order benefit. That’s because he will be responsible for the debt after using the tenant’s assets for discharge.

How does a guarantor work?

The guarantor is someone who becomes legally responsible for guaranteeing any third-party debts.

In this way, the surety is a personal guarantee (fidejussory) and because of this, the person who guarantees the performance is the universality of pledgeable assets of the guarantor.

Therefore, for this not to happen, there must be trust between the parties, as an eventual need for coverage could lead to unpleasant surprises for the person who decided to provide this assistance.

It is important to mention that the surety must not be confused with the endorsement. Since the guarantee is a guarantee that is restricted to credit instruments, while the guarantee covers the guarantee of contracts.

Thus, there are cases in which when the bail is charged, usually in extreme situations and after many negotiations, this individual may have his property seized.

In fact: it is very important that you read the rental agreement well and, if necessary, consult a lawyer so that all the details can be clarified.

Is it worth being a guarantor?

First, it is necessary to emphasize that one should be careful when deciding to be a guarantor. Caution when accepting to be a guarantor is extremely important, especially when knowing the person you are providing this help with.

Rent Clauses: what needs to be included in a contract?

In this way, if the person acts in bad faith, or becomes unable to afford the responsibilities, all the financial loss will be borne by the guarantor to pay it off, so that large debts are formed.

In fact: this type of guarantee has been widely used by banks and real estate for years, showing the importance of the guarantor .

However, this position can come to present a huge loss for those who accept this condition, if there is any lack of payment.

Therefore, there is little caution, because often whoever has this responsibility will become responsible for paying the debt of the rental contract , so that even your own property is in the condition of becoming a guarantee.

Finally, do you still have any doubts about what a guarantor is ? Comment below!

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