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SA Property Law - Is the Guarantor Responsible for the Shortfall?

Discussion in 'Property Law Forum' started by mrssmith, 21 February 2016.

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  1. mrssmith

    mrssmith Member

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    My fiance has a property with an ex-partner of 6 years and has been under the impression she was taking the property over, however in this time it has decreased in value and now can't afford it and is seeking money.

    The property has dropped 50k (apparently) and her parents went guarantor for roughly 100k. If the property is forced sold is the guarantor responsible for the shortfall or does this get split between the owners?

    She has also claimed her legal advice was that if we pushed for the forced sell, we would be left with a bigger % of the 50k shortfall because we are in a partnership earning money while she is younger, studying and only working part time. Surely this isn't the case under Property Law?
     
  2. Sophea

    Sophea Well-Known Member

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    The guarantor will be liable to the creditor for whatever the primary debtor cannot pay. Therefore if your partner and his ex are both on a mortgage they are jointly and severally liable for the debt. That means the bank can come after both or either one of them for the whole of the debt. If they cannot satisfy the debt then they can go after the guarantors for the debt as well.
     
  3. mrssmith

    mrssmith Member

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    What if both parties don't agree to pay off anything towards the shortfall, will the bank go after both their assets (cars, etc.) before the guarantor?
     

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