Many people enter into Guarantee Agreements to secure a home loan for their child, or as a part of various business transactions. It is very important to seek Independent Legal Advice (and obtain a Solicitor’s Certificate) when providing a guarantee for any third party, even if you are certain that the person or entity you are guaranteeing will fulfil their repayment obligations.
In fact, most banks now require a Solicitor’s Certificate to ensure that you are only entering into the agreement after seeking Independent Legal Advice, to protect the interests of all parties involved. This has been a common requirement since the controversial Amadio case.
We provide independent legal advice (Solicitor’s Certificate and Guarantee Advice) to Third Party Guarantors (Mortgagors), Trustees of Self Managed Superannuation Funds (SMSF), Family Pledges, Beneficiaries of Family Trusts, Unit Holders of Discretionary Trusts, Directors of Companies and situations where lenders require parties to seek legal advice prior to executing loan, mortgage, security, or guarantee and indemnity documents. Having provided the requisite advice we will then provide the Solicitor’s Certificate sought by the Lender confirming that you understand the nature and purport of the documents being executed and that you have done so without any undue influence.
Providing a Third-Party Guarantee means that should the person you are guaranteeing (the borrower) not be able to honour their financial obligations regarding the loan, you would ultimately be responsible for covering the repayments up to either a fixed or the total amount of the debt (where the guarantee is unlimited).
It is important prior to interview that all documentation is obtained from the Lender and read. If required, you should consult your accountant to obtain financial advice and the Financial Advice Certificate.
We are centrally located in the Adelaide CBD and appointments can normally be obtained at short notice. Advice sessions typically take between one hour and one and a half hours. Part of the process includes Verification of Identity (VOI). Should it be required, we can scan and email all executed documents to the Lender or their solicitors.
Please contact us for a confidential chat with one of our Solicitors. We look forward to being of assistance.