A close friend asks you to act as a joint guarantor for their future apartment. You agree, but one question remains: how much can your commitment potentially rise to? The answer depends on what is stated in the guarantee deed, and since 2022, the law has much more strictly regulated this ceiling.
Joint guarantee and ceiling amount: what the 2022 reform changed
Before January 1, 2022, a landlord could draft a guarantee deed without specifying a precise ceiling. The guarantor then committed to a potentially vague amount, which led to frequent disputes.
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Ordinance No. 2021-1192 of September 15, 2021, which came into effect in early 2022, established a clear rule. The deed must now mention a maximum amount in both numbers and words, under penalty of nullity. This requirement is set out in Article 2297 of the Civil Code, supplemented by Article 22-1 of the law of July 6, 1989, for residential leases.
In practice, if you sign a deed without a specified ceiling or with an inconsistent mention between the body of the text and the handwritten commitment, the guarantee can be annulled by a judge. Several recent decisions confirm this trend to sanction poorly formalized acts. To delve deeper into the issue, you can consult what is the maximum amount for a joint guarantee on Big Immo which details the concrete implications of this obligation.
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Calculating the maximum amount of a rental guarantee: the items to add up
The law does not impose a single formula for setting the ceiling. The landlord freely chooses the amount, provided it is reasonable and explicit. However, this ceiling always covers the same categories of rental debts.
Here is what the maximum amount can include:
- Unpaid rents and associated rental charges, for the entire duration of the commitment specified in the deed
- Any late payment interest charged to the tenant in case of delayed payment
- Repair costs for the property if damage is noted upon exit
The landlord generally adds several months of rent including charges, then adds a margin to cover repair costs. The ceiling often represents the equivalent of several quarters of rent, but no legal scale sets a mandatory multiple.
What the ceiling cannot cover
The amount stated in the deed cannot exceed what the guarantor is actually able to bear. This is the notion of proportionality, reinforced since the reform.
In practice, if the guarantor has already guaranteed other loans or leases, these prior commitments count in the overall assessment of their financial capacity. A manifestly disproportionate guarantee can be reduced by the judge to the extent that the guarantor could realistically assume at the time of signing, in accordance with Article 2300 of the Civil Code.
Disproportionate guarantee: the trap that guarantors ignore
You earn a decent salary and think you can guarantee your child’s lease without difficulty. But do you already have an ongoing mortgage, or another guarantee signed a few years ago?
Since the reform, the judge no longer simply cancels an excessive guarantee. They can reduce it to the amount that the guarantor could actually bear at the time of signing. This nuance changes the game for landlords: a deed set too high will not necessarily be null, but the recoverable amount will be reduced.
To assess the disproportion, the courts examine:
- The net income of the guarantor at the time of signing
- Their real estate assets and available liquidities
- All of their ongoing guarantee commitments, even those that have matured but are not yet extinguished
- Their fixed charges (loans, pensions, other debts)
A prudent landlord therefore has an interest in requesting a information sheet from the guarantor before signing. This sheet, if sincere, will serve as a reference in case of subsequent disputes.
Formalism of the joint guarantee deed: the mistakes that nullify everything
The maximum amount alone is not enough. The deed must comply with specific formalities to remain valid.
The ceiling must appear in both numbers and words in the deed. If the two mentions diverge (for example, “15,000 euros” in numbers but “twenty thousand euros” in words), a judge may declare it null or retain the lower amount.
The guarantor must also have access to the lease contract before signing. The guarantee deed must mention the nature of the commitment (joint, not simple), the duration, and the identity of the tenant concerned. Any omission weakens the document.
Duration of the commitment and impact on the amount
A joint guarantee deed can be concluded for a fixed or indefinite duration. In the latter case, the guarantor retains the option to terminate their commitment, but this termination only takes effect at the expiration of the current lease.
The longer the duration of the commitment, the higher the maximum amount should be to cover the real risks. A ceiling calculated based on one year of rent loses all utility if the lease runs for three years with tacit renewal.
A landlord who sets a too low amount deprives themselves of part of their guarantee. One who aims too high exposes themselves to a judicial reduction. The balance rests on a realistic estimate of potential rental debts, related to the financial capacities of the guarantor at the time of signing.