Can My Father Be My Surety?

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Can my father be a surety?

If someone wants to become surety for another person’s debt he should make sure that he has enough security to cover this debt. If one gives insufficient security without meaning to do so then his becoming surety will still take effect because  If someone does not have anything and cannot find anyone else willing to become surety for him then there is nothing wrong with his son becoming surety for him as long as he has enough to cover.

Concerning whoever claims that one of his family members can be a guarantee for him, then this is false. Rather the guarantee has to be someone who fulfills the conditions of being suitable in order to fulfill the role of guarantor. So it cannot be one’s father or anyone else from amongst his family members unless they are able to offer something (in return) which will cover his debts until they become due when he offers himself as a guarantor/surety for him.

Can a family member be a surety?

If the applicant does not have any known banking references, a known family member may stand as a guarantor for the loan application process to start. However, this is entirely at the discretion of the bank. 

Yes, you can use any blood relative as surety for your loan application, but it is better if he/she has a good credit score (700+). Not every family member will be comfortable with standing as a guarantor to your loan application. This will be considered a dangerous and risky thing for them, so it is better if you don’t show any pressure on them. 

The bank may allow blood relatives or friends to stand as guarantors to your loan application unless there’s something going on that makes it absolutely necessary for someone else to step up to guarantee a loan or mortgage. Even if they are willing to back you up, it doesn’t seem like there’s any reason why a family member should have to unless you are in some kind of dire financial straits that have no visible solution. 

Otherwise, there’s really not much of an advantage to having someone else guarantee the loan for you when you’re applying for one. If everything checks out with your credit history and current financial circumstances, then the lender shouldn’t need something like this in order to approve your application.

Can sureties be parents?

A decree of divorce should not be granted to a parent who is acting as the surety for the payment of school fees and other financial obligations that arise from the parent’s obligation to provide primary care for a child, according to a recent court ruling in Pretoria.

The ruling follows an application by a father for the rescission of the bond that he had signed earlier, constituting his sureties.

The respondent in this matter is not only one of the sureties on the surety bond but also pays school fees for his children, who are minors.

Can your spouse be your surety?

For reasons stated in the prior article, any loan agreement with a family member or friend can lead to serious consequences for all parties involved if things don’t go as expected.

One of the problems is that since it’s hard for most people to come up with their portion of payment quickly and easily (like when the deadline looms), the logical solution seems to be asking someone close by for help. After all, who else would let us down so badly just because we need them now? Somehow this situation seems different from those times when friends or relatives disappointed us in the past.

Somehow a family member or a friend becomes a “surety,” which is someone who answers for another’s debt, usually under contract law. Of course, when you make the loan agreement, you probably don’t think about it in those terms because everyone concerned will be careful and thoughtful about how they deal with each other. 

Additionally, if your spouse is helping to pay the tuition bill, then asking him or her to sign something along with you may never cross your mind. After all, he/she has been there from day one even when it wasn’t always easy – right?

Can your spouse be your surety?

In order to effectively, lawfully, and validly pledge your property as a surety for another person’s debt, one must first ensure that the following requirements are met:

  • First requirement: A discernible or identifiable person who is liable shall personally plead for the dispensation of his estate. In other words, only a person with personality can bind himself by contract. If it were allowed that corporations could be obligated without owners or directors who possess personality then mortgages would become very problematic because these obligations could not be enforced against them in case they still exist but have ceased operations.
  • Secondly: The one who pledges should be the owner of the property he intends to pledge. Hence, if there is encumbrance or charge over the pledged property, the pledgor should first remove or extinguish the encumbrance before he executes the contract of suretyship.
  • Thirdly: There must be certainty as to what is due and demandable on the principal obligation. The creditor should know with exactitude the amount which is due him from his debtor. If it is not certain, then there will be no basis for an action of mortgage, which is nothing more than security for money loaned.
  • Fourth requirement: The thing pledged must be real and existing; it cannot be merely ideal like future inheritance since anything which has not come into being cannot have value wherewith to secure a debt. Hence it would afford no protection to creditors if they are allowed to take possession of it.
  • Fifth: The two contracting parties must be lawfully authorized to bind themselves; hence, there is a need for authority from some competent person/entity, whether judicial or extrajudicial.
  • Sixth: It must be validly stipulated that upon non-payment of debt on maturity, the creditor shall have the right to sell the thing pledged. If he cannot this without first resorting to a court of law to determine the validity or invalidity of the debt, then there will be no basis for a mortgage.
  • Lastly: The creditor should have a right to sell even before maturity in case of insolvency on the part of the debtor. If, upon his insolvency, the debtor cannot lawfully make an arrangement with his creditors without first resorting to a court of law, then there will be no basis for an action of the mortgage.

To know more about surety bonds, visit Alpha Surety Bonds now!

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