The figure of the guarantor is allowed by law both for applying for a mortgage and for rental contracts. In fact, due to the increase in non-payment of rents caused by the Covid-19 pandemic, many landlords have been requesting a guarantor to sign the rental contract.
The guarantor is a natural or legal person who serves as a guarantor, i.e. guarantees the payment of the financial obligations contracted by the guarantor, in the case of a rental contract, he or she undertakes to guarantee the payment of the lease instalments.
In recent years there has been a rental bubble that has boosted the price of deposits, so there is a tendency to require two or three months of deposit, as well as a guarantor as an extra guarantee, whose obligation is maintained as long as there is a rental debt with the lessor. When signing the rental contract, the guarantor assumes the following responsibilities:
To take over the debt in case the guaranteed tenant is unable to settle it.
To cover the outstanding costs that the tenant fails to meet and that are stipulated in the rental contract.
To respond as principal debtor, i.e. to assume the payment of the debt with his current and future assets.
In the case of a mortgage, the guarantor undertakes to cover all the expenses that the guarantor cannot cover. The figure of the guarantor at the time of purchasing a home is quite common, especially when the necessary funds are not available to buy it. Many people turn to their parents, close relatives or friends to sign the mortgage as guarantors.
The guarantor undertakes to cover all the expenses derived from the mortgage that the guarantor cannot cover, these expenses must be stipulated in the contract signed between the parties. Furthermore, it must be considered that the liability is transferred to the descendants of the guarantor.
However, it is possible to limit the liability for non-payment, for which the contract must stipulate the minimum amounts, interest and fees to be covered by the guarantor and, once paid, the guarantor is exempt from any liability.
