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  • Buy-to-Let

    Remote guarantor signing tenancy agreement?

    Hi all

    Normally when I take a tenant with guarantor, I ask them all to attend check-in and every party signs the agreement.

    However what if the guarantor lives in the other side of the country? How do you deal with this?

    I've thought about doing this via email, however would this be done AFTER the tenant has signed the agreement and moved in?

    Any advice appreciated.

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    Hi Adam

    Always get the guarantor to sign their letter of consent before tenants sign the Tenancy Agreement. Otherwise that guarantee has zero value. 

    Guarantee can be signed remotely but it will need to be witness by a reliable person. It doesn't have to be a professional but if you want peace of mind then you could suggest them getting it witnessed by a solicitor. They normally charge a member of public like £10 for the service. I don't know if legally you can make this (solicitor to be a witness) a mandatory request. 

    I don't know if you use your own tenancy agreement but normally the guarantor doesn't sign the agreement. They sign a separate letter.
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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 

    Oh that's interesting. Didn't know you could get away with just a letter.

    "I don't know if you use your own tenancy agreement but normally the guarantor doesn't sign the agreement." - This is how i've always done it which I imagine is quite common.

    Just found this article from Landlord Law which covers this question and the above. Both are valid ways of doing it


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    I’ve been guaranteeing my 4 kids University accommodation remotely every year for about 10 years and never needed a witness . Lately it’s an e mail which sends me the tenancy agreement and then a second  e mail with an authentication code which I have to enter on my reply to the first e mail saying I accept the terms .
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    I think from a Landlord point you want the Guarantor letter that you sign to done as a DEED. if there is no witness then whilst the court will recognise as a legal agreement it won't recognise it as a deed. Thereby have a slightly lower importance associated to it.

    It depends if the electronic company who accept your code are effectively acting as a virtual witness somehow. 

    I don't suppose you could share which company that was?
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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 

    Decided to use a guarantor agreement similar to this

    Interesting article from the NLA advising against including the guarantor's details on the tenancy agreement - Do you need a guarantor? - Which pretty much confirms what you say Saagar

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    Yeah I've read in a few places where they recommend to have the letter separate. I don't know why but must be some previous court case where it was difficult to prove.

    I think one of the requirements is that the guarantor should always sign first. If everyone is signing the tenancy agreement at the same time but then there is no time stamp on it then how'd you prove in court who signed first. I'm being pedantic here but an excuse nevertheless that a scrupulous guarantor could use as an argument. Knowing how courts favour tenants I'd want to mitigate any possibility of that. 

    Funnily the NLA also has a guarantor template with a lot less terms and conditions attached to it than your example. Would be good to know why you'd choose this one over the one supplied by NLA. Will help me see a different point of view on the decision making.
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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 

    Agreed.

    "Would be good to know why you'd choose this one over the one supplied by NLA." - I'm not an NLA member. I simply googled around, found a few examples but that one I linked to seemed to be more watertight.

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