Agreement to Cosign is a legal instrument signed by an individual or organization to ensure the safety to rent payment. Typically, such agreement provides financial security to a landlord and it is necessary in case the tenant has unstable job or poor credit history. Some important considerations are
- Please attach original lease copy to the cosign agreement.
- Landlord, tenant, and cosigner must sign this instrument in acceptance of the terms and condition specified in it.
- The cosign agreement remains effective throughout the lease term.
- The cosigner grants various rights pertaining to the recovery of debt to the landlord. Such debt recovery situation arises only when the tenant is not able to make payments on the due date.
- The landlord must relieve the cosigner in writing to terminate this cosign contract.
Signing a cosign agreement is common during various situations. However, the cosigner must carefully proceed considering the financial accountability of debt payment in case the tenant fails to pay. The landlord may choose to file a lawsuit for recovery in spite of the withheld security deposit. Some common situations requiring signing a cosign agreement are
- When the tenant is jobless or has unstable job
- The tenant has poor credit history
- Students requiring shared accommodation after a certain period. For an example, a student can cosign for another roommate going away for some period.
Please remember that signing cosign contract makes you equally responsible as the tenant for debt payment. Therefore, please proceed with caution. In addition, a cosigner must know any provisions for lease modification and / or lease extension as it implies extended liability.
9 Simple Steps To Prepare Agreement to Cosign
Please download and use this generic cosign contract form. Please make sure to attach the original lease agreement to this form and retain copies of all documents for your reference. You must fill following information while preparing the document.
- Step 1 – Enter the date of execution of the cosign agreement
- Step 2 – Enter landlord’s legal name
- Step 3 – Enter cosigner’s legal name
- Step 4 – Enter tenant’s legal name
- Step 5 – Enter detailed address of the leased premises
- Step 6 – Enter the date of original lease agreement
- Step 7 – Date, print name, and signature of the landlord in acceptance
- Step 8 – Date, print name, and signature of the tenant in acceptance
- Step 9 – Date, print name, and signature of the cosigner in acceptance