Rights of a Guarantor
A guarantor is someone who agrees to sign an agreement and basically guarantees that if for some reason the tenant cannot pay, the guarantor will make the payments. There are certain rights accorded to you as a guarantor before and after signing the contract of guarantee. These include:
(a) The right to attain a copy of the letter of guarantee or contract of guarantee and any other documents in relation to the loan transaction.
(b) The right to seek advice from your lawyer before signing the contract of guarantee. (Nevertheless, you will have to pay the legal fees yourself).
(c) The right to the information on the outstanding balance of the account of the borrower with the financial institution subject to the borrower’s consent.
(d) The right to call upon the borrower to pay off the loan to release you from all your liabilities under the guarantee. This right can be exercised at any time and even before the financial institution has called upon the borrower to pay the debt. However, this right may be subject to the terms and conditions of the loan, which may vary from customer to customer.
(e) The right to be indemnified by the borrower for any payment made to the financial institution. This means that you can sue the borrower for the amount that you have paid to the financial institution.