Are there any laws governing the use of a third-party guarantor?

In North Carolina, landlord and tenant law does address the use of a third-party guarantor. Under North Carolina law, a landlord may require a third-party guarantor, who is required to sign a lease agreement on behalf of the tenant. This guarantor agrees to be held responsible for any unpaid rent or damages caused by the tenant during the lease term. If the tenant fails to pay rent, the landlord may seek payment from the guarantor. The guarantor is not required to pay any more than the tenant agreed to in the lease agreement, nor is the guarantor responsible for any additional costs resulting from the tenant’s breach of the lease. The guarantor must have the capacity to pay the tenant’s obligations. They must also be informed of their rights and responsibilities by the landlord prior to signing the agreement. Furthermore, the third-party guarantee must be in writing and signed by the guarantor. The tenant will still remain liable for the rent and any other obligations under the lease. The guarantor only agrees to pay if the tenant fails to do so. It is important to note that North Carolina does not have a statutory cap on the amount a guarantor may be liable for, so it’s important to consider if the guarantor can handle the financial obligation in the event of a tenant default. Additionally, the landlord and the guarantor must enter into an enforceable agreement. It is recommended that both parties consult with a legal professional to ensure that the agreement meets all the requirements of North Carolina law.

Are there any laws governing the use of a third-party guarantor?

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