What is an indemnitor agreement?

An agreement to pay on behalf of another party under specified circumstances. An insurance policy is an indemnity contract.

What is an indemnitor in real estate?

A mutual indemnity agreement, also known as a mutual indemnity treaty, is an agreement (not a legally binding contract) between specific underwriters within a state to indemnify or hold one another harmless for some loss or damage for specific actions that may cause damage or loss related to a potential title claim.

What is buyer indemnity?

A buyer indemnity is a clause included in the purchase and sale agreement (PSA), which relates to the reps and warranties provided by the buyer. It basically releases the seller from any liability that may arise due to the buyer’s failure to provide true and accurate reps and warranties.

What does indemnity statement mean?

In an indemnity agreement, one party will agree to offer financial compensation for any potential losses or damages caused by another party, and to take on legal liability for whatever damages were incurred. The most common example of indemnity in the financial sense is an insurance contract.

What does indemnitor mean in a surety bond agreement?

The indemnitor is another name for the principal and they enter into the indemnity agreement with the surety. An indemnitor is required to pay the surety company back for the bond if the surety bond agreement falls through.

Who is required to sign an indemnitor agreement?

Individuals who take on the role of indemnitor in an indemnity agreement are required to sign the agreement along with their spouse or their next of kin. Depending on the type of surety company that offers the bond agreement, the signing party requirements might vary.

Can a majority shareholder serve as an indemnitor?

For incorporated businesses, the majority shareholder might also need to serve as an indemnitor. Agreements for surety bond indemnity are always done in writing. Many companies will include the agreement as part of the application you fill out to obtain a surety bond for your business.

Which is the best definition of an indemnitor?

What Is an Indemnitor? An indemnitor is a company or person agreeing to take on the obligation that would typically be placed on a surety if an individual defaults on a bond issued to him.

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