Legal advice - guarantor

Am currently going through the borrowing process and have been asked by my lender to provide the following "document":

Legal Advice - Guarantor: Guarantor is to receive legal advice in relation to this loan agreement.

I've had several loans approved before but never seen this before. Have also asked my solicitor and it's not something they can help with.

Anyone have any idea what the above actually means and what "document" I actually need to provide?

 

The gtor needs to take their mortgage docs to a solicitor and receive legal advice on entering into a gtor agreement.
I’m surprised your solicitor can’t help or refer you to someone who can.

 

Yep, all good and well to do that but they're asking me to provide an actual document. I'm not sure what document I would actually provide. E.g. would a letter signed by me saying I've received legal advice suffice?

 

It's to protect you so that someone can explain the document and the risks it entails in entering into a guarantor contract. At the end they will give you a sign off that you understand the risks and you give that to your bank. It will cost around $200

I agree with @tobe, I don't know why your solicitor couldn't do it or refer you to someone who does. Google shows many options in Melbourne for you melbourne independent lawyer guarantor - Google Search

 

they would normally include a for for the lawyer to sign

 

its to protect the bank! The guarantor can't then claim they didn't know what they were getting into.

Would probably cost $660 to $880 as the lawyer would need to read the whole set of documents and then explain it all. about 2 hours.

 

Thanks all for replies.

Who needs a lawyer? I'll just Google all my legal questions next time

 

The person supplying the guarantee will have to get independent legal advice to ensure they fully understand the implications of the guarantee. The solicitor they choose will supply a letter to document this.

It’s not new. I had to supply one when taking out a joint mortgage for an IP in my hubby’s name. Around 1990, ANZ bank requirement.
Marg

 

And rely upon the answers at your own risk!
Marg

 

@jyeung80 already knows that google sometimes gives the wrong answer as has just been evidenced by the discussion on the corporate tax rate changes.

 

Are you the guarantor? You should have received a whole set of documents addressed to you as the guarrantor. If you haven't you should contact your bank and ask for them to be re-sent.
Cheers, Medine

 

Hi Westminster,

Could I ask for a favor please? Can you provide any local perth solicitor contacts who does it please?
I have had quotes from $770 to $1200..

 

Most do ask for it now.

The only lender is ANZ that gives the guarantor the option to seek legal advice or not

 

That foolish. I imagine ANZ requires the guarantor to certify that choice. Most people think guarantees are nothing major. It is NOT a last report form of loan security. It can be used in ways not considered.

eg Home insurance lapses and home burns down. Guarantor may be the major loan security a lender will seek. And sell the land which is harder to sell with the slab to be removed etc

 

The price from my post was a while ago so not sure how current it would be but I used Independent Legal, Perth - Guarantor Advice for Loan Guarantees; Solicitor Certificates; Going Guarantor

 

Hi,

I assume this is a company/trust loan where you are acting as an individual guarantor?

Some banks will give you the option of filling out a legal advice section within their loan paperwork, but I believe they are asking for the Law Institute of Victoria solicitor's legal advice certificate. Most solicitors prefer this, as their peak bodies and liability insurance providers do not like them signing random bank forms.

I have two solicitors that I use in the South East of Melbourne. The fees charged are $500-650 and they will want to review a soft copy before they meet. I used
Dinesh Weerakkody from Victory Law and other clients have used Felix A Vitello. I never had any issues with any rework, as the process is fairly standardised.

 

Correct , ticked and signed off by guarantor if they want to seek legal advice or not.

 

@Westminster Thanks, I missed your message.
but what a coincidence, I went and saw Michael who sorted it out in mins..
Such affordable as well.
Thank you!

 

Excellent. What's the current price for the service so I can know?