How Can I Verify the Guarantor's Ability to Pay?

To verify the guarantor's ability to pay, ask for the guarantor's legal name and the entity backing the guarantee, plus their governing jurisdiction. Request recent audited financial statements or bank letters that demonstrate liquidity. Find out who would enforce the guarantee, how long it lasts, and what conditions or deductions could apply. Check whether the price or terms rely on the guarantee and whether the price has been inflated to support it. Have an independent lawyer (and, if relevant, a financial adviser) review the document and compare the property’s underlying market value without the guarantee. Model conservative income and costs without counting on the guarantee, and be clear about what happens after the guarantee ends. Rely on a written guarantee rather than marketing talk or projections.