CHECKLISTS

Guarantor`s checklist

Surety is a promise to fulfil financial obligations of another person or company (the borrower) on their behalf.

 

Provide surety only to a person or a company you know and trust.

 

Before providing surety

  • carefully consider if you are able to perform the obligations of the borrower
  • carefully consider your ability to meet payments, and provide surety only for the amount that you can actually repay (the maximum amount of the guarantor’s liability)
  • carefully familiarise yourself with the surety and the loan contracts prepared by the bank
  • do not hesitate to contact the bank if you have any questions. Seek legal advice where necessary.


When signing the surety contract

  • carefully listen to the bank employee’s explanations with regard to both the loan and the surety contracts
  • do not be afraid to ask if something is unclear
  • check that there are your correct contact details (address, phone number, email address) in the surety contract.


When the surety contract is signed

  • be proactive and monitor how the loan contract is being carried out. If the borrower does not answer your questions, make sure you address these questions with the bank.
  • always inform the bank of any changes to your contact details (address, phone number, email address). This is the only way you can be sure that important information reaches you in time
  • carefully read the bank notifications and make sure you read all registered letters addressed to you.

 

If the borrower fails to fulfil his/her obligations, the bank then gives you an opportunity to perform the obligation

 

Do not forget that you have committed yourself to the contract and may have to perform the borrower’s obligation.

 

By performing the borrower’s obligations, you can avoid additional costs and litigation.

 

You have the right to demand from the borrower compensation of any amounts paid by you on behalf of the borrower.

 

DO NOT FORGET – THE SURETY IS YOUR OBLIGATION TO PERFORM THE CONTRACT ON BEHALF OF THE BORROWER!

Pledger`s checklist

A mortgage means when the loan is not paid back, the bank has the right to claim the sale of your the apartment or house (with the land).

 

Before you give your consent to set up a mortgage

  • carefully consider if you are ready to take the risk of abandoning your own apartment or house if problems arise with regard to loan repayment
  • decide whose obligations and what obligations in particular you are prepared to ensure
  • you have the right to request draft contracts from both the notary and the bank – carefully study their content
  • do not hesitate to contact the bank and the notary if you have any questions. Seek legal advice where necessary.

 

When signing the notarized contract

  • carefully listen to the notary’s explanations
  • do not be afraid to ask if something is unclear
  • make sure that the precise contract expresses exactly what you have agreed with the borrower and the bank.

 

When the contracts are signed

  • be proactive and monitor how the loan contract is being carried out. If the borrower does not answer your questions, make sure you address these questions with the bank
  • always inform the bank of any changes to your contact details (address, phone number, email address). This is the only way you can be sure that important information reaches you in time
  • carefully read the bank notifications and make sure you read all registered letters addressed to you.

 

Where the borrower fails to fulfil his/her obligations, the bank then gives you an opportunity to perform the obligation.

 

By performing the borrower’s obligations, you can prevent the sale of the pledged apartment or house, as well as avoid additional costs and litigation.

 

You have the right to demand from the borrower compensation of any amounts paid by you on behalf of the borrower.