Utah Guaranty Attachment to Lease for Guarantor or Cosigner
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A co-signer, on the other hand, will usually have their name on the title of the home or automobile. Guarantors are usually liable for default only when the lender has done everything possible to get the primary borrower to make the payments.
Some landlords don't accept co-signers for their apartments, so you are not guaranteed an apartment if you have a co-signer. In addition, your co-signer is taking on a fair amount of risk by consenting to be monetarily responsible for your lease.
Co-signers have equal responsibility for payment of monthly rental costs, while a guarantor is generally sought for payment only when the primary signer is unable to make the rental payment.
A co-signer will need to have a good credit score, be able to prove their income, and show that they have the capacity to pay for the unit if needed on top of their own debts and payments.
Guarantors sign the lease and are responsible for the payments under the law, but they don't occupy the apartment nor are they entitled to occupy it.
The Basics: A Co-signor is part owner of the property, may or may not live in the property and is responsible for the debt repayment. A Guarantor is responsible for the debt repayment if the borrower (applicant) is unable to pay but has no benefits of owning any part of the property.
The cosigner, simply by signing on to the debt, is liable for the debt without the creditor needing to to take any additional actions. The guarantor is only liable for the debt after the creditor has exhausted all other options of collections from the original borrower.
Business owners are often required to give a personal guarantee to get a business loan or to lease commercial space for their business. Most business advisors say you should keep business and personal financial matters separate, and the loan is for the business, not for the individual.
