Guarantor

A guarantor is an individual or entity that agrees to be responsible for the repayment of a loan or the fulfillment of a financial obligation if the primary borrower or debtor defaults. In real estate, a guarantor might be required by a lender to provide additional security for a mortgage or lease, especially if the primary borrower or tenant has insufficient credit history or income to qualify on their own.

The guarantor signs a legal agreement, often called a guaranty, where they commit to covering the debt or obligation in case of default. This adds a layer of protection for the lender or landlord, ensuring that they have a recourse to recover their money even if the original borrower or tenant fails to meet their obligations.