Short Definition
Person guaranteeing tenant's obligations financially and legally, becoming liable for debts if tenant defaults on payment.
Overview
Legal Basis
Guarantee is based on the Civil Transactions Law issued by Royal Decree No. (M/191) of 1444 AH in articles on personal security. The Ejar Platform Regulation requires registering guarantor in its legal form. Bank guarantee subject to Banking Law and Saudi Central Bank regulations. Commercial guarantee subject to Companies Law.
Practical Example
A newly employed university graduate (SAR 7,000 salary) wants to lease apartment at SAR 28,000 annually (2,333/month). Lessor hesitant because salary-to-rent ratio is only 3:1 (minimum acceptable). Solution: requests guarantor. Applicant's father (government employee with SAR 18,000 salary) agrees to guarantee. Upon contract signing in Ejar: 1) original lessee registered. 2) father registered as solidary guarantor. 3) both digitally sign. 4) guarantee contract attached as official annex. If son delays payment for any reason, lessor may directly claim father. Enforcement procedure targets both. This arrangement protects lessor, helps young person start, and burdens father with calculated responsibility.
Common Mistakes
- ✗Guarantor without financial capacity check — guarantor may himself be unable to pay; guarantee useless.
- ✗Guarantee from minor or legally unqualified person — invalid; guarantor must be adult of full capacity.
- ✗Failing to specify guarantee nature (solidary/subsidiary) in contract — creates dispute upon enforcement.
- ✗Believing guarantee ends with original lease end — may continue to cover damages not yet settled.
- ✗One guarantor for multiple tenants without clarification — dispute may arise on liability distribution.
International Differences
In UAE, guarantor common for foreigners. In Turkey, 'Kefil' requires notary documentation. In US, 'Co-signer' known for students. In UK, 'Guarantor' for student housing and large contracts. The Saudi advantage: digital guarantor registration in Ejar facilitates obligation and enforcement, giving parties clarity on responsibilities.