What Is a Guarantor?
A guarantor is a person or company that promises to pay another party's debt or perform their obligation if that party defaults. The guarantor is not the primary borrower; rather, the guarantor stands behind the borrower as a secondary source of payment. Lenders and landlords frequently require a guaranty when the primary party's credit or financial strength is uncertain.
Common Uses in Florida
- Commercial leases — an owner personally guarantees a business tenant's rent
- Business loans — owners personally guarantee a company's debt
- Real estate financing — a guarantor backs a borrower who could not qualify alone
Guaranty Must Be in Writing
Under Florida's Statute of Frauds (§ 725.01, Florida Statutes), a promise to answer for the debt of another generally must be in writing and signed to be enforceable. The written guaranty defines its scope — whether it is limited or unlimited, and whether the guarantor is liable immediately on default or only after the lender pursues the borrower first.
Guarantor vs. Surety
A guarantor's liability is usually secondary — triggered only when the primary party fails to pay — while a surety is typically liable alongside the borrower from the outset. The exact obligations depend on the language of the agreement.
Related Terms
- Surety Bond — A related guarantee of another's obligation
- Default — The event that triggers a guarantor's obligation
- Collateral — Security that may back the same debt
Barnes Walker Business Law
Barnes Walker's attorneys draft, review, and enforce guaranties in Florida lease, loan, and business transactions. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. § 725.01
Florida’s Statute of Frauds requires a promise to answer for the debt of another to be in writing and signed by the party to be charged in order to be enforceable.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC