Reform of Security Interests Law
Regarding the Surety Bond
What are the implications for real estate agencies in 2022?
A reform that primarily concerns suretyship, defined more clearly and in a simplified manner in Articles and following of the Civil Code “Art. 2288.—A surety bond is a contract by which a surety undertakes to the creditor to pay the debtor’s debt in the event of the debtor’s default.”, particularly in the case of a lease agreement.
The main changes in this reform that are of practical interest to real estate agencies:
1 – Handwritten notes
Gone are the days of having to copy a mandatory form word for word, which could lead to errors and render the document invalid. From now on, all surety agreements must include a statement affixed by the surety in the document, and this statement no longer has to be handwritten,
“Art. 2297.- Under penalty of nullity of the guarantee, the individual guarantor must personally include a statement indicating that he or she undertakes, as guarantor, to pay the creditor the amount owed by the debtor in the event of the debtor’s default, up to a limit of the principal and incidental costs expressed in words and figures. In the event of a discrepancy, the guarantee shall be valid for the amount written out in full.”.
The surety bond must be for a specified amount, and the joint and several liability clause will no longer apply only to the joint and several liability between the surety and the principal debtor, but also to that between the various sureties for the same debt "Art. 2290"— A surety bond may be simple or joint and several. Joint and several liability may be stipulated between the surety and the principal debtor, among the sureties, or among all of them.".
