KNOW THE DIFFERENCE BETWEEN GUARANTOR AND SURETY

KNOW THE DIFFERENCE BETWEEN GUARANTOR AND SURETY

When it comes to property and business transactions in Nigeria, many people use the terms Guarantor and Surety as if they mean the same thing.

In law, they are very different and not knowing the difference could cost you too much.

A guarantor is someone who promises to pay or perform an obligation only if the main party fails.

The guarantor’s liability is secondary. Meaning the lender or party owed must first attempt to recover from the main debtor before going after the guarantor.

For example, if John guarantees Mark’s loan repayment, the lender must first demand payment from Mark before going after John.

A surety, on the other hand, is bound together with the debtor from the very beginning. His liability is immediate.

Once the debtor defaults, the creditor can proceed directly against the surety without even contacting the debtor.

In property and business transactions, this distinction matters a lot. When you act as a surety in a loan, business, lease or other property deal, you are putting your neck on the line just like the borrower.

But when you are a guarantor, you only become liable after the debtor’s fails to pay.

Before signing any document that mentions Guarantor or Surety get an experienced Property and Business Lawyer to review it.

The law sees the difference and so should you.

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APEX CHAMBERS, Law Firm of Property/Real Estate and Business/Corporate/Commercial Lawyers, Attorneys, Barristers, Solicitors Advocates, Legal Practitioners rendering legal services, Legal Consultants and Notary Public with Law Office in Port Harcourt, Rivers State, Nigeria

Phone: +234(0)7030868694 (Calls & Whatsapp)
Email: info@apexchambersglobal.com
Website: www.apexchambersglobal.com