Collateral security

In the event of a tenant not being guaranteed by his/her company or by a bank garantee, a landlord may wish to obtain additional guaranties in the form of a 'surety'.

The person providing the surety for the Tenant undertakes to pay the rent, charges and all sums that the tenant could be liable for. This person must therefore be fully aware of the consequences. This is why that person is asked to handwrite the terms of the surety, as per french law.

“I hereby offer collateral security knowing there won’t be a possibility for discussion and division till 07/31/2008. This collateral security is for a maximum amount of .......... € (numbers and letters) representing payment for rent amounting to € 2.400 (Two thousand four hundred euros) per month, as of today’s date, and its revision each year based on the average of the four last quarters of the IRL( Index of reassessing rent yearly) published by INSEE (National Institute for Statistics and Economic Studies). The last index known at the signature of the lease is the 3rd trimestre of 2007 (109,01).

I also offer collateral security for all sums that the tenant could be liable for, such as rent, building maintenance charges, repair costs and eventual cost of legal proceedings and indemnities. These obligations are stipulated in the lease of which I received a copy.

I certify knowing fully the nature and the extent of my engagement. When the surety does not indicate a duration of time or when it is said to be undetermined, I can put a term to my engagement unilaterally.

If the duration of the surety is properly stated, its cancellation will happen automatically when the tenant leaves, whether it is at the end of the initial lease or its renewal, or during either following a proper three months notice to the landlord.