Guarantor (ručitel)
A person who declares in writing that they will satisfy the creditor if the debtor fails to pay (§ 2018 et seq. of the Civil Code). The guarantor is liable with all their assets, but the creditor can turn to them only after calling on the debtor in writing and the debtor has not paid within a reasonable period. Guarantors are rare with mortgages; banks prefer a co-borrower or a pledge over another property.
Example
A borrower stops repaying a CZK 4,000,000 mortgage with a payment of CZK 23,384 (5.00 %, 25 years). The bank sends him a written demand, and if he still does not pay, it turns to the guarantor, who must cover the overdue payments or, after acceleration, the entire balance. The guarantor can then claim the money back from the borrower.
In practice
Parents often say “we're guaranteeing it with our flat”, but legally they are pledgors (zástavci), not guarantors, and that makes a real difference to the rest of their assets. Before signing, check what role the contract actually gives you. A guarantee signed without an overview of the borrower's other debts, and without a right to regular information about repayments, leaves you exposed.
How it differs
A co-borrower pays from the start and stands in the position of a debtor. A pledgor providing additional collateral risks only the specific property, whereas a guarantor is liable with everything they own. Guarantors also often hear about the borrower's problems only when the bank's demand arrives.
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