Legal Question in Real Estate Law in New Jersey

Re: Cosigning a lease for an elderly

Congratulations! You have broken a long streak in which every question that contained the word "co-sign" was bad news for the one who asked. You are the first person I know of who has had the good sense to ask ahead of time. Go to the head of the class.

First, there is a difference between being a co-tenant and being a co-signer. I will assume that you know that and answer accordingly.

If the primary obligor (your friend) on an instrument such as a lease defaults for any reason, good or bad, the co-signer (you) becomes obligated to pay. Once there is a default, the other party (landlord) can sue you for what is owed even if your friend can be served and has the means to pay. There is usually a provision for you to be notified before a suit is instituted, but not necessarily. So, if you co-sign and your friend doesn't pay, you have to.

It would be far better for your friend for either of you to consult with a lawyer in your area who can advise you on how best to ensure that neither of you is stuck with a bad deal. Many landlords would agree to limit her liability to a few months rent in the event of illness or disability. They know that, if she is elderly and disabled, that may be all they will get anyway. Talk to a lawyer.

See also: http://info.corbettlaw.net/lawguru.htm