Found 94 relevant pages. The strongest matches explain what “guarantor clause new south wales” means, where the buyer risk sits, and how the clause plays out in real contracts.

Frequent Risk Signals

• Personal liability for corporate buyers: If you are buying through a Proprietary Limited (Pty Ltd) company to invest, the standard Contract for Sale will almost always require the company directors to sign as personal guarantors, putting their own family homes and personal bank accounts at risk.
• Full financial exposure: The guarantor is not just liable for the initial 10% deposit; if the buyer fails to settle, the guarantor can be sued for the entire purchase price, plus the seller's legal costs, default interest (often 10% to 12% per annum under New South Wales law), and any financial shortfall if the property is resold at a lower price.
• Joint and several liability: Where there are multiple guarantors (such as a husband and wife directing a family investment company), the seller can pursue just one guarantor for the entire debt under the Contract for Sale, usually targeting whoever has the deepest pockets or most accessible local assets.
• No escape through buyer liquidation: Even if the purchasing company goes into liquidation or administration, the guarantor's obligations remain entirely intact, meaning the seller can bypass the defunct company and immediately demand payment from the guarantor.
• Immediate legal action: Under a standard New South Wales Contract for Sale, sellers are generally not required to exhaust all legal avenues against the primary corporate buyer before issuing a Notice to Complete and subsequently suing the guarantor directly.
• Strict timeframes: If the primary buyer misses the settlement date, the critical 14-day Notice to Complete applies equally in its severe consequences to the guarantor, leaving extremely limited time to arrange emergency alternative funding to avoid a devastating breach of contract.