deed of guarantee limited

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I got the following e mail response from a parent of a student taking one of my houses next year. He seems to raise a few valid points to be fair, has this guarantee been challanged legally and how do you suggest I respond?


I understand that my son (Robert) and 7 others are interested in renting a house from you for

the next academic year. Robert has given me a document entitled Deed of Guarantee (Limited)

and asked me to check it and then (if OK) sign it.

I have no problem with acting as a guarantor for Robert to cover…

1. Any rent that he should owe but not pay

2. Any damage which he should cause but not pay for

… during the period in which he is a tenant.

However, I have read this document and have problems with this, and am not willing to

agree to and sign this as it stands and without qualification and clarification.

I am not a solicitor … but I doubt whether any solicitor would ever recommend

agreeing to and signing this document.

There are a number of problems with it….

The first problem is the language/style in which it is written – a legalese style which makes

it difficult to understand easily. I understand that this is necessary up to a point, but it could

be made a lot easier to understand.

The second problem – and this is the major problem – is the content itself, the terms

and conditions. There have to be limits to limits to (a) what Robert can be held liable for, and

(b) the guarantee and liability that I provide, and there should be a clearly defined list

of what we can and cannot be held liable for, and to what extent. However, the document

does not acknowledge these points or clarify these matters … in fact, it appears to

the very opposite by stating that the guarantee and liability are unlimited.

As a consequence, the document suggests or implies that I could be held liable for

just about anything and everything, with no limit whatsoever to this liability or costs.

For instance … what happens if the house should suffer major for damage … will I

be expected to pay major rebuilding costs ? Can Robert be held liable for any costs

(other than anything he might already owe) AFTER he has terminated his tenancy and left ?

Third, there are some other questions that needs answering, ie

1. What notice do the students have to give in order to leave the property ? (1 month ?

2 months ? more ?)

2. Who is responsible for building and contents insurance ? You ? The students ?

I have asked Robert to speak to the other students and see what their parents/guardians

make of this document, and also take it along to the student accommodation office and

see what they have to say about it."

This member has been thanked by 1 member for this post.
06/02/2008 00:00

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