Anyone have a sample Guarantee and Indemnity?

by Readers Question

11:10 AM, 23rd April 2018
About 7 months ago

Anyone have a sample Guarantee and Indemnity?

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Anyone have a sample Guarantee and Indemnity?

Hi there, I want the tenant’s mother to provide a guarantee and indemnity (not just a guarantee).

Does any kind member have a sample document I could use?

Many thanks

Seaworthy

Editors Note:

An indemnity creates a primary obligation ie the indemnitor is directly liable for any loss. A guarantee creates a secondary obligation where the loss has to be attempted to be recovered from the tenant first and then the guarantor.



Comments

Neil Patterson

11:12 AM, 23rd April 2018
About 7 months ago

I would recommend Tessa Shepperson of Landlord Law >> https://www.landlordlaw.co.uk/home-page

However it begs the question if you want a belt and braces approach should you really be considering taking the tenant on?

Robert Mellors

16:06 PM, 23rd April 2018
About 7 months ago

I have a 2 page Deed of Guarantee document which includes the following wording about indemnity:

"I hereby agree to indemnify you against any default in payment of rent, *mesne profits, damages for use and occupation, damages for disrepair, losses, cleaning of the premises to the original standard, other reasonable damages or costs you may incur as a result of the said occupancy, or any further occupation of the property after the expiry of the initial Tenancy/Licence period whether under a statutory or a contractual continuation thereof or not."

If you want a copy of the whole document, then feel free to email: robert.mellors@hotmail.co.uk

Seaworthy Evans

16:02 PM, 24th April 2018
About 7 months ago

Reply to the comment left by Neil Patterson at 23/04/2018 - 11:12
Good point but the reason why an indemnity is better is that an indemnifier stands in the place of the indemnified whereas a guarantee is conditional upon showing that the guaranteed has defaulted.

Kate Mellor

21:33 PM, 25th April 2018
About 7 months ago

You might like to look at the “Deed of Guarantee (unlimited)” available free on the Landlordzone website. It’s the one I personally use. You need to ensure that any agreement is not for an unending period of time with no means of bringing it to an end or it may be unenforceable past the fixed term.

Kate Mellor

14:43 PM, 1st May 2018
About 7 months ago

Reply to the comment left by Kate Mellor at 25/04/2018 - 21:33
Just to clarify, that document is from the RLA rather than Landlordzone as I originally stated. So it's only free to members. Just thought I'd correct that in case anyone is looking for a good one.


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