Are there any laws governing the use of a third-party guarantor?
In Tennessee, landlord and tenant law does govern the use of a third-party guarantor. A third-party guarantor is a person who agrees to be legally responsible for the payments of the tenant’s rent if the tenant is unable to pay. A guarantor must sign the lease and must live in Tennessee. The Tennessee Code, specifically title 29, chapter 13, outlines the rights and obligations of a third-party guarantor. Any dispute between a landlord and tenant must be handled between those two parties directly, without involving a third-party guarantor. However, the guarantor is legally required to pay the rent if the tenant defaults on the lease agreement. The guarantor can pursue the tenant for reimbursement if they have to pay the rent. Additionally, any monetary damages caused by the tenant’s behavior must be paid by the tenant. If the tenant doesn’t pay the damages then the tenant can be pursued legally by the landlord. A third-party guarantor is not responsible for any damages caused by the tenant’s behavior. In summary, Tennessee does have laws governing the use of a third-party guarantor for the landlord and tenant. The guarantor is legally bound to pay the rent if the tenant defaults on the lease agreement and is not held responsible for any damages caused by the tenant’s behavior.
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