A Solicitor’s Certificate is essentially a legal acknowledgement that ensures all the parties involved in a loan transaction: the lender, borrower and guarantor are aware and agree with the terms and conditions of the contract.
Have you been asked to get a Solicitor’s Certificate? Fill out the adjoining form or make an appointment via our Service Portal.
Commercial Banks, NBFI’s, private and other non-traditional money lenders are increasingly insisting on borrowers obtain a Solicitor’s Certificate or independent legal advice certificate in order to better secure their loans. It is particularly demanded if there is a deed of guarantee required for the loan. In these circumstances, a Solicitor’s Certificate is required to shift the risk of the loan over to the customer.
The basic format of a Solicitor’s Certificate in Victoria can vary from bank to bank and other financial institutions but the solicitor must invariably certify that:
If a Solicitor’s Certificate is not carefully considered, all the parties involved in the transaction face the risk of being involved in expensive litigation where no one benefits- the lender, borrower, guarantor and advisers.
Our professional indemnity insurers for lawyers are very strict in relation to our requirements for solicitors providing these certificates.
We at IMPEX provide Solicitor Certificate to our clients at a fixed fee for standard services, that reflects the time, skill and diligence required with:
Speed ● Convenience ● Knowledgeable help ● Friendly service
Loan and guarantee documents are often involved with hidden small print that can catch you or the borrower (whose actions you are guaranteeing) out. That is why a solicitor’s certificate is essential.
A Deed of Guarantee (DoG) is a legal document which states that if a person or company “1” agrees to be responsible for person “2” ‘s commercial rent if person “2” is unable to pay it.
Generally, a guarantor can only act on behalf of one loan at a time. This is certainly worth thinking about if you have two or more children that may require your help in the future. As soon as the loan is paid, the individual is able to act as a guarantor again.
If the debtor defaults on loan, the debt becomes the Guarantor’s responsibility. And if the Guarantor dies during the term of guarantee, the obligations do not die. A guarantor may have to sell their property to clear the debt.
The eligibility requirement to be a guarantor should be at least 18 years of age. They must have a property in Australia, particularly for home loan banks won’t accept property located overseas. They need to be a New Zealand or Australian citizen.
A guarantor is a person who gives “guarantee” for someones else loan or mortgage by promising to repay the debt if they can’t afford to. The documents required to provide by the guarantor during the loan process are two bank statements, two pay stubs, one or two tax returns, and a letter stating the income if owning the business.
Up until recently, only Commercial Banks and NBFI’s used to ask for a solicitor’s certificate from the loan-seeking party. But, to better secure their money, even private money lenders require a certificate of independent legal advice as of late.
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