- Joined
- Feb 17, 2014
- Messages
- 12
I just want to validate these definitions as well as the convenience of getting someone to sign as a co-signer vs guarantor in Ontario.
Co-signer: a person who signs a tenancy agreement along with the tenant and agrees to be responsible for the obligations of the tenant. For example: the obligation to pay rent and to pay for damages, etc.
Guarantor: a person who signs an agreement stating that they will guarantee that a tenant will meet specific obligations set out in the guarantee itself. For example: the obligation to pay rent and to pay for damages, etc.
As everybody knows, in Ontario is always better for Landlords to go to the small claims rather than to the Board for anything except rent payment. With this reality in mind, I believe I read somewhere that if someone signs as a guarantor (meaning that s/he is not mention in the tenancy agreement conforming to the definition above) then any claim can go directly to the small claims any time whereas if it is a co-signer then the claims have to be settled at the Board.
I have two applicants for a townhouse. One has OK income. The second is low... Without asking she offered to include her mom as a co-signer... However, I plan to ask her to be a guarantor.
Does anyone with experience in Ontario has any comments with regards pros and cons on having a guarantor vs co-signer? I'm inclined to have a guarantor signing a separate agreement so if there are problems with tenants not paying utilities or damages I just go to the small claims (since the Board typically considers that any payment is always rent-first and anything else is second).
Note that I've seen many lease agreements where guarantors are part/included in the tenancy agreement... I understand that for all purposes these "guarantors" are indeed "co-signers" and therefore claims against them have to be settled at the Board (while on tenancy). I just want to be sure to use the right instrument to increase the possibility to settle things at the small claims rather than the board.. should the need arises in the future.
Any advise is greatly appreciated
Thanks
Alex
Co-signer: a person who signs a tenancy agreement along with the tenant and agrees to be responsible for the obligations of the tenant. For example: the obligation to pay rent and to pay for damages, etc.
Guarantor: a person who signs an agreement stating that they will guarantee that a tenant will meet specific obligations set out in the guarantee itself. For example: the obligation to pay rent and to pay for damages, etc.
As everybody knows, in Ontario is always better for Landlords to go to the small claims rather than to the Board for anything except rent payment. With this reality in mind, I believe I read somewhere that if someone signs as a guarantor (meaning that s/he is not mention in the tenancy agreement conforming to the definition above) then any claim can go directly to the small claims any time whereas if it is a co-signer then the claims have to be settled at the Board.
I have two applicants for a townhouse. One has OK income. The second is low... Without asking she offered to include her mom as a co-signer... However, I plan to ask her to be a guarantor.
Does anyone with experience in Ontario has any comments with regards pros and cons on having a guarantor vs co-signer? I'm inclined to have a guarantor signing a separate agreement so if there are problems with tenants not paying utilities or damages I just go to the small claims (since the Board typically considers that any payment is always rent-first and anything else is second).
Note that I've seen many lease agreements where guarantors are part/included in the tenancy agreement... I understand that for all purposes these "guarantors" are indeed "co-signers" and therefore claims against them have to be settled at the Board (while on tenancy). I just want to be sure to use the right instrument to increase the possibility to settle things at the small claims rather than the board.. should the need arises in the future.
Any advise is greatly appreciated
Thanks
Alex