This section provides information about your obligations and rights as a guarantor for a student during the term of their occupancy.
What is a guarantor liable for?
A Guarantor guarantees all the student’s payments. Both the Guarantor and their guaranteed occupant are liable for all obligations in the contract.
You must pay any unpaid money that your guaranteed student fails to pay:
- their proportion of their contracted amount in full, or
- any costs incurred by loss, damage, costs, claims, liabilities, legal fees, and other expenses as covered by the contract.
How long is a guarantor liable for?
You remain liable for your student’s outstanding payments throughout the full term of the agreed occupancy period. Your liability remains in place if your guaranteed student:
- vacates the property early (unless replacement contracts are signed by a new occupant and the leaving student pays all overdue fees), or
- extends the period of occupany.
What happens if the agreement is changed?
The existing Deed of Guarantee remains in place unless you are asked to sign a new document.
What happens if the student dies or is declared bankrupt?
As Guarantor, you remain liable for all costs, fees, and expenses incurred by the student in all eventualities.
What happens if the Guarantor dies or is declared bankrupt?
The guarantee is cancelled or moves to the next Guarantor if the student has more than one.
What should I do if I am concerned about becoming a Guarantor?
We recommend you seek legal advice to fully understand your obligations so you can make appropriate preparations.
What happens if I do not agree to the Deed of Guarantee?
The Tenacy Agreement will be void if any student or guarantor fails to sign. The property will be allocated another group or re-advertised as necessary.
When does the Guarantee come into effect?
The agreement comes into effect after:
- All students and the property owner sign the contract, and
- All Guarantors and the property owner sign the Deed of Guarantee.