April 2013: Signed Surety on a Bond?

Property can indeed be a great investment, just be aware that signing personal suretyship – which you will almost certainly have to do if you buy property in a company or trust with money borrowed from a bank – carries risks that you can and should actively manage. Whilst the bank’s first line of security will be a bond over the property, its second will be you personally as surety.

And several recent court decisions illustrate just one of the dangers that you face – sale of the property under value.