A common point of confusion for landlords, tenants, and guarantors in Scotland relates to Private Residential Tenancies (PRTs) and guarantees. PRTs are open-ended, meaning they don't have an initial fixed term after which they 'renew'. They simply continue until ended correctly by the tenant or landlord. Does a guarantee signed at the start automatically cover this entire open-ended period?
Answer: It Depends ENTIRELY on the Wording! There is no single "yes" or "no" answer – it hinges entirely on the precise wording within the Deed of Guarantee document that the guarantor signed.
Possible Scenarios Based on Wording:
- Well-Drafted Guarantee (Covers Entire Occupancy): Most professionally drafted Deeds of Guarantee intended for use with PRTs are worded to cover the tenant's liabilities for the entire duration of their occupation of the property under the tenancy agreement, however long that may be. It explicitly states the guarantee continues as long as the tenancy exists. This provides continuous protection for the landlord. Legalmaster™ Deeds of Guarantee are typically drafted with this comprehensive coverage in mind.
- Poorly Drafted / Old Style Guarantee (May Mention Fixed Term): If an older style guarantee document was used (perhaps mistakenly adapted from English AST practices) or if it was poorly drafted, it might potentially reference only an initial period or be ambiguous. This could lead to arguments about whether the guarantee still applies years down the line.
- Specific Limiting Clauses: Very occasionally, a Deed might contain specific clauses limiting the duration, but this is unusual for standard guarantees linked to PRTs.
Crucial Action: Read the Deed!
- Landlords: Ensure the Deed of Guarantee you use is specifically designed for Scottish PRTs and clearly states it covers the entire period of the tenant's occupancy under the agreement.
- Guarantors: Before signing, read the Deed of Guarantee very carefully to understand the full extent and duration of your potential liability. If unsure, seek independent legal advice. Don't assume it expires after a year.
The wording is everything. A clearly drafted Deed of Guarantee ensures certainty for all parties. For compliant Deeds designed for Scottish PRTs, contact Legalmaster™ on 0333 340 8984.
