Solicitor Guarantee Certificate Adelaide
CPC Lawyers regularly provides advice to individuals who choose to become a Guarantor for another individual, company, trust or self-managed superannuation fund.
This guarantee is a promise to the Lender that they will meet the obligation of loan repayments if the borrower fails to live up to their financial lenders' requirements.
As the individual giving the guarantee, known as the Guarantor, in most instances receives little and/or nothing out this arrangement, whilst exposing themselves to high financial risk, financial institutions require the Guarantor to obtain independent legal advice before signing any guarantee documents.
This includes understanding the risks involved, such as what happens when the borrower defaults on the loan, and the possibility of losing your personal real estate and any other valuable personal assets.
This independent legal advice also provides the financial institution distributing the loan, with the assurance that you have made a free and informed decision to act as Guarantor for the borrower.
Solicitor Guarantor Certificate
Common scenarios Guarantors are required:
Many first home buyers are now looking to the bank of mum and dad. Although this may sound cliche, the bank of mum and dad is another key way in which consumers can get into the marketplace.
Here are some other scenarios:
Parents acting as Guarantors for their child's home loan;
Loans to Companies; and Self-Managed Superannuation Funds
Loans to Family Trusts
Guarantor Legal Advice
You need to obtain independent legal advice, so you fully understand the nature and effect of your obligations as a guarantor.
What we will cover:
Independent legal and accounting advice about the documents you are required to sign;
Consider all your options to ensure that you are making the best financial decision for you; and
Ask all the relevant questions so that you completely understand the documents you are signing.