Guarantor, Surety or Joint Debtor: What’s the Difference in a Lease Agreement?

A clear guide to rental guarantees in Mexico

When renting a property in Mexico, one of the most common questions is:

“Do I need a guarantor, a surety, or a joint obligor?”

These terms are often confused—and one of them is commonly used incorrectly.

Let’s clarify this in simple terms.

First things first: “Aval” (surety) does NOT apply to leases

In Mexico, people often say “aval” for any guarantee, but legally this is incorrect.

What is an “aval”?

An aval is a commercial law figure, regulated by the General Law of Credit Instruments.

It only applies to:

• Promissory notes
• Checks
• Bills of exchange

Key takeaway: An aval should not be used in residential lease agreements.

What is a FIADOR (property guarantor)?

A fiador is an individual or entity that backs the lease with a real estate property.

How it works

• The fiador owns a property
• The property is offered as a real guarantee
• If the tenant defaults:
• The landlord may demand payment from the fiador
• And eventually seek seizure of the property

Common requirements

• Property free of liens
• Registered with the Public Property Registry
• Reasonable value relative to rent
• Located in an enforceable jurisdiction
• Approved through legal investigation

The investigation usually takes 3–5 business days.
The no-lien certificate is valid for one month.

At Mundo Urbano, this process is included in the legal protection policy.

What is a JOINT AND SEVERAL OBLIGOR (Obligado Solidario)?

A joint obligor is a person or company that signs the lease alongside the tenant and Is bound to the same obligations as the tenant

What does this mean?

• Responsible for rent, damages, penalties, and delivery of the property
• The landlord may demand payment from:
• The tenant
• The joint obligor
• Or both, jointly or separately

No prior lawsuit against the tenant is required.

Why joint obligors are common

• No property required
• Faster and more flexible
• Can be an individual or company
• Often combined with legal protection policies

Common requirements for a Joint and Several Guarantor (Obligado Solidario)

In most cases, the joint obligor is asked to provide documentation very similar to the tenant’s, including:

1.      Income ratio (3:1): for example, if monthly rent is MXN $30,000, the joint obligor is typically expected to show at least MXN $90,000 net monthly income.

2.     Relationship to the tenant (family member, friend, partner, or affiliated entity).

3.     Local residence is not strictly required—the joint obligor does not necessarily need to live in the same city where the property is located.

4.     No relevant criminal record or legal issues.

5.     Verifiable income, supported by bank statements, employment contract, payroll slips, invoices, tax returns, etc.

6.     Good credit history (as reflected in the credit bureau report).

If the joint obligor is a company (legal entity), the criteria are generally similar, but adjusted to corporate documentation (articles of incorporation, corporate powers/authority, financial statements or bank statements, tax ID/registration, and ID of the legal representative, among others).

Key differences

Which one is better? This depends on the owner’s requirements, as well as other factors such as: tenant’s profile and history, rent price, type of property, results of the “Poliza juridica”, among others.

A well-structured leases and legal protection prevent conflicts and misunderstandings.