Rental Agreement Garantor Issue

Buster1874

Hello. About a year ago my wife signed up to act as a guarantor on a rental agreement that her foster daughter (who receives housing benefit) took out on a property. At the time of signing, she asked the agent from the rental company to inform her immediately should there be any problem with the rent payments. She hasn't heard from her FD for a good few months now but has just received a letter from the rental company asking for a 4-figure sum in lieu of unpaid rent. A statement was sent that shows that her FD was falling behind with rental payments within two months of date of initial agreement. Seeing as the rental agreement states that they may consider eviction if the rent falls more than two weeks overdue, is there not some legal requirement to also contact the guarantor before a huge sum of overdue rent is accrued (currently standing at about three months unpaid rent). My wife can not contact her FD, the phone remains unanswered. She has also called the rental company, they have nothing on record to say that they have been asked to notify her if there were any problems with unpaid rent. What should our next move be please? (PS she is an ex-foster daughter, no longer in care with no family link, only emotional)

Colincbayley

Presuming the guarantor agreement was set up as a 'Deed of guarantee' The best advice I would give is to pay up.

Agreeing to be a guarantor should never be taken lightly as the consequences can be very severe.

Buster1874

Thanks. Is it possible to withdraw from the position of Guarantor?

theartfullodger

The contract you were guaranteeing was between FD & Landlord: The rental company (agency) is simply LL's agent.

I would politely thank the agency for their request & ask (in writing, to the Landlord c/o agency) to see copies of all relevant documents - the original tenancy agreement, the guarantor form/forms, their bank statements showing missing payments (that will be fun for them) and their letters to FD enquiring why she hasn't paid.

When you get these documents go through them with a fine tooth-comb & hope someone somewhere made a mistake: If not, as Colin says, you'll probably have to cough up. You may need to get help/advice from either a solicitor who understands tenancies & guarantors (most don't) or CaB or Shelter.

A possibly more interesting issue is that as far as I know until the tenancy is ended your guarantor-ship remains in place.

It is very possible the rental company don't know what they are doing & made a simple error.

Sorry to be blunt: tricky one..

Hope it works out

Lodger

Buster1874

The agreement states ' TERM - A term certain of 6 months from 22/8/08.
Does this mean that the responsibility as guarantor ended if another agreement was not signed?

theartfullodger

The TERM will refer to the initial fixed-term of the tenancy: At the end of that if the tenant & Landlord do nothing (eg LL doesn't send out a new tenancy & tenant signs it & returns it) then the tenancy carries on (for ever) in what is called a Statutory Periodic Tenancy, month by-month. T can give 1 months notice, LL 2 months (Housing Act 1988 I think),

I would ask for copies of ALL tenancy agreements. Why? Well many agencies usually send out new tenancy agreements (so they can get some more fees)... If there was a new tenancy & you were'nt the guarantor they can go *u** themselves.. ('scuse my ...)

To operate as a lettings agency you need no registration, no qualifications, no criminal records check, not even a GCSE in sums...

Cheers!

Lodger

Colincbayley

Buster1874 wrote: »

The agreement states ' TERM - A term certain of 6 months from 22/8/08.
Does this mean that the responsibility as guarantor ended if another agreement was not signed?

More than likely not no, sorry. A term certain of 6 months just means the fixed term of the AST, it would then roll onto a periodic tenancy.

At the end of the day, you signed the agreement, by all means check it to see if you have a 'get out clause' you can use, as lodger says they may have made a mistake and you could use that to your advantage.
However, you did vouch for your FD and in the spirt of the agreement you should abide by it.

theartfullodger

Just read elsewhere something interesting.....

agreement to be xxxxxxx's guarantor may be unenforceable if

(i) you were not given a copy of the tenancy agreement to read before signing and enough time to seek legal advice about it, or
(ii) it wasn't witnessed and executed as a deed

- as I said earlier get copies of all the documents first, don't pay anything yet, see what if they all read correctly and if you have any doubts the documents are right post back here/get advice elsewhere....

Hope it works out...

Cheers!

Buster1874

How valid is a Guarantor agreement if not signed by an independent witness?

theartfullodger

How valid is a Guarantor agreement if not signed by an independent witness?

Ah...

This is where I think you need specialized legal advice... I take it you have copies of all the documents already & everything is as it should be (ie no mistakes)??

I'm happy to suggest a couple of solicitors names (with whom I have no business relationship) - who I know specialise in this area.

PM me with an email ID & I'll send you the details...

or you could start with...
http://www.landlordzone.co.uk/forums/showpost.php?p=97194&postcount=3



Cheers!

Lodger