A Dangerous Document for the Unwary
Guarantees are usually required by lenders where the lender is seeking security over real estate and one of the borrowers is not the proposed owner or owner of the real estate. These guarantees have become increasingly onerous in the past few years being continuing guarantees that in effect state that the guarantee will continue even though the loan has been repaid and discretionary clauses stating that the lender alone can decide when the guarantee is discharged. It is important that you consult a solicitor (if not obligatory) to discuss these documents and know their effect before entering into a guarantee.
© 2014 Grogan & Webb