Don't blindly trust "standard" forms
I was reading a Lawyer's blog where he mentioned the inadequacy of some fill in the blank forms, namely some Realtor forms. I couldn't agree more. One such form that I take issue with is a TAR Guarantor form.
I won't address the whole form here, only a small piece of it.
I think TAR 2007 1-1-10 takes a liberal view of the latest change regarding increases with respect to guarantors. The tar form states, "...Guarantors are liable under any renewal of the lease that occurs on or before that date so long as the renewal involves LL and T and the financial obligations of the Guarantor are not increased."
Texas property code sec 92.021(b)(3) states, "the guarantor is liable under a renewal of the lease only if the renewal: (A) involves the same parties as the original lease; and (B) does not increase the guarantor's potential financial obligation for rent that existed under the original lease."
As such, I prefer to use the following language to at least "lock in" the original rent (before any increase) if the guarantor doesn't sign a new agreement for any reason, "This Guaranty applies when the lease agreement commences and continues until the lease agreement ends, including any amendment, modification, extension or renewal of the lease agreement entered into on or before the Last Date of Guarantor Renewal specified above. This Guaranty also applies until the Last Date of Guarantor Renewal specified above if any month-to-month tenancy is established. Guarantor is only liable under a renewal if renewal involves the same parties as the original lease. Guarantor is not liable for increases in rent at any renewal, or increases in rent if any month-to-month tenancy is established, unless Guarantor executes a separate written agreement."
I am not an Attorney, but I think mine protects me by ensuring a guaranty of the original rent amount before the increase, whereas the tar form seems to imply the guarantor in not liable upon any renewal if the rent is increased.
Please do not assume you are covered because you used a standard form. There is no such thing as a standard form.
Speaking about being covered, let me throw a disclaimer out as well. ***** The above is only my opinion. I am NOT a Lawyer, and I am NOT attempting to practice law or give legal advice ***** Please consult proper Legal Counsel.
I won't address the whole form here, only a small piece of it.
I think TAR 2007 1-1-10 takes a liberal view of the latest change regarding increases with respect to guarantors. The tar form states, "...Guarantors are liable under any renewal of the lease that occurs on or before that date so long as the renewal involves LL and T and the financial obligations of the Guarantor are not increased."
Texas property code sec 92.021(b)(3) states, "the guarantor is liable under a renewal of the lease only if the renewal: (A) involves the same parties as the original lease; and (B) does not increase the guarantor's potential financial obligation for rent that existed under the original lease."
As such, I prefer to use the following language to at least "lock in" the original rent (before any increase) if the guarantor doesn't sign a new agreement for any reason, "This Guaranty applies when the lease agreement commences and continues until the lease agreement ends, including any amendment, modification, extension or renewal of the lease agreement entered into on or before the Last Date of Guarantor Renewal specified above. This Guaranty also applies until the Last Date of Guarantor Renewal specified above if any month-to-month tenancy is established. Guarantor is only liable under a renewal if renewal involves the same parties as the original lease. Guarantor is not liable for increases in rent at any renewal, or increases in rent if any month-to-month tenancy is established, unless Guarantor executes a separate written agreement."
I am not an Attorney, but I think mine protects me by ensuring a guaranty of the original rent amount before the increase, whereas the tar form seems to imply the guarantor in not liable upon any renewal if the rent is increased.
Please do not assume you are covered because you used a standard form. There is no such thing as a standard form.
Speaking about being covered, let me throw a disclaimer out as well. ***** The above is only my opinion. I am NOT a Lawyer, and I am NOT attempting to practice law or give legal advice ***** Please consult proper Legal Counsel.
Comments (1)
Too many times I have received fill in the blank contract and the filled in items have been wrong and this comes from professionald. Never trust what written. Read it thoroughly
David Wedemire, over 12 years ago