If you have been asked to be a guarantor for a loan then the lender will usually insist, or be required to have you provide, a Solicitors Certificate. Our experience will empower you to make fully informed decisions.
What is a Personal Guarantor and why do you need Independent Legal Advice?
In general, all lending institutions will ask for as much security as they can get. One of the ways they get more security is to ask for a Personal Guarantee. Always be aware that the personal Guarantee is protect the lender, not you as a guarantor.
What is Independent legal Advice?
Independent legal advice is defined as Legal advice you gain from a licensed legal professional who has no association with the lending body or the other party. This ensures that only your best interests are in mind.
How can Independent legal advice help you?
Protects you against things you don’t know
You may be committing yourself to a liability far beyond what it appears, and independent legal advice will make you fully aware of the potential consequences and worst-case scenarios.
Empowers you to make realistic informed decisions
Knowing all the facts helps you make logical decisions based on legal reality rather than emotional decisions based on the hope that everything will work out well.
When should independent legal advice be used?
Loan guarantees
If you are asked to guarantee a loan for another person or company, the lender will almost certainly require an independent legal advice certificate from the guarantor.
Binding Financial Agreements (BFA’s)
If you are entering into prenuptial agreements or any type of financial arrangement, then independent legal advice will ensure you have a clear legal understanding of the agreement.
Family law
Many millions of dollars have been wasted in family law cases because emotions can, and often do, lead to irrational decisions and costly mistakes. An independent counsel with no attachment to either side of the case will always focus on the best solution for you.
Property
The transfer of property, traditionally one of the largest assets anyone owns, may be the focus of undue pressure or influence by interested or third parties. Independent legal advice will safeguard those involved against unfavourable dealings in this area.
Self-Managed Super Fund Loans
SMSF Guarantors – Every SMSF member must source independent legal advice and provide a guarantee to the trustee.