Found 112 relevant pages. The strongest matches explain what “guarantor clause clause queensland” means, where the buyer risk sits, and how the clause plays out in real contracts.

Frequent Risk Signals

• Personal Asset Seizure: If a buyer defaults on an REIQ contract, the seller can immediately sue the guarantor personally, putting the guarantor's own family home, bank accounts, and investments at severe risk to cover the seller's losses.
• Full Purchase Price Liability: The guarantor is not just liable for the initial deposit; if the buyer fails to settle on the agreed date, the guarantor can be sued for the entire remaining purchase price, which in Queensland often exceeds hundreds of thousands or even millions of dollars.
• Default Interest Costs: Under standard REIQ terms, a defaulting buyer accrues default interest (often around 9-11% per annum) on the overdue settlement amount, and the guarantor is legally bound to pay this rapidly compounding debt.
• Resale Loss Compensation: If the contract crashes and the seller is forced to resell the property at a lower price within a 12-month period, Queensland law allows the seller to pursue the guarantor for the exact dollar difference between the original contract price and the lower resale price, plus all associated marketing and legal fees.
• No Obligation to Sue the Buyer First: The seller does not have to exhaust their legal options against the primary buyer before attacking the guarantor; they can issue a legal demand directly to the guarantor the moment a breach occurs.
• Survival of Liability: Even if the buyer's company is liquidated, deregistered, or if an individual buyer declares bankruptcy, the guarantor's personal obligations under the Guarantor Clause remain fully enforceable.