What is Guarantor Advice?
It is not uncommon for a person to be a guarantor for a personal loan, home loan or investment loan on a commercial interest and will require Guarantor Advice. Usually this is a parent supporting one of their children however directors of companies may also be asked to guarantee a new enterprise or refinance.
Our solicitors will take you through any loan agreement or other instrument and advise you of your responsibilities under the document. Most financial institutions require a guarantor to seek independent advice prior to accepting the guarantee.
This will take the form of a Solicitor’s Advice Certificate. This is to certify that you have sought legal advice and understand the documents that you will sign.
Often the financier will wish to take a mortgage over a property owned by the guarantor as well as the primary security.
Don’t leave yourself exposed to unforeseen risks and book an consultation with our solicitors.
Company Directors
Often a company director will be required to act as guarantor for a loan taken out by their company. This can include trustees for a trust if they act in their individual capacity rather than that of a director.
It is important to understand the ramifications of becoming a Guarantor especially if a mortgage is placed over any property that you own.
Reach out to our team to make an appointment.
Why Solicitor Advice?
CBA v Amadio
Non Est Factum – Not My Deed
The High Court of Australia found that an extreme imbalance in knowledge and bargaining power could lead to a commercial transaction being set aside due to equity.
As such financiers protect themselves now from these instances by requiring a borrower to seek legal advice.
For those that are interested in the entire legal judgement you can read it on Jade.
