Guarantor is still present in 61% of contracts
Source: O Globo - Rio de Janeiro / RJ - 06/06/2010
An unprecedented study carried out by Secovi Rio, in partnership with FecomércioRJ and the Brazilian Association of Property Administrators (Abadi), shows that 61% of residential lease contracts are guaranteed by the traditional guarantee, whereby the guarantor is responsible for the debt debtor before the creditor. Then comes the surety bond, with 24,6%, and the security deposit (deposit of three months of the rent), with 10,5%.
Industry experts believe that the new rules of the Tenancy Law, in force since January, should make the guarantee no longer essential in the medium term for the signing of contracts.
Eviction without bureaucracy for defaulting tenants
In the new law, it was included the determination that, in the case of contracts that waive any type of guarantee, the lessee can be summarily evicted if he defaults.
The legislation also provides that, once the contract is extended, the guarantor has the right to discharge himself from his obligations, but remains responsible for the guarantee for 120 days after the notice of termination.
- Although the bail is an important guarantee, if a tenant candidate has a job that is solid, good remuneration and has no restrictions in the credit protection agencies, the guarantor can no longer be essential - assesses the legal vice president of Secovi Rio, Rômulo Mota.