Do you need a Certificate of Independent Legal Advice or advice on a Family Law Binding Financial Agreement?
Banks and lenders will usually require guarantors to get independent legal advice before executing loan documentation. The lawyer giving that advice will then issue an independent solicitor’s certificate which you can take back to the bank or lender to prove that you have received the advice. An independent solicitor’s certificate is a certificate proving that an independent lawyer has met with you and explained the legal ramifications of the contract you entering into. The same principles apply to binding financial agreements under the Family Law Act.
Before becoming a guarantor, you need to be aware of your obligations. Providing a guarantee can be onerous if the borrower does not make repayments on time. In the event that the borrower does not comply with their obligations under the loan then the guarantor may have to pay back the entire loan balance plus costs, interest and fees. If the guarantor cannot pay the bank may sell their assets including their home. The bank can sell any of the mortgaged assets in any order it chooses and does not need to sell the borrower's assets before the guarantors.
Advice on Binding Financial Agreements or "BFA's" is similar in that you need it before you can execute the agreement however, the purpose of taking independent advice before executing the BFA is so that you can better understand whether the agreement is fair.
If you require independent legal advice, telephone our lawyers at the Gold Coast Legal Advice Hotline on (07) 5532 9744
Before becoming a guarantor, you need to be aware of your obligations. Providing a guarantee can be onerous if the borrower does not make repayments on time. In the event that the borrower does not comply with their obligations under the loan then the guarantor may have to pay back the entire loan balance plus costs, interest and fees. If the guarantor cannot pay the bank may sell their assets including their home. The bank can sell any of the mortgaged assets in any order it chooses and does not need to sell the borrower's assets before the guarantors.
Advice on Binding Financial Agreements or "BFA's" is similar in that you need it before you can execute the agreement however, the purpose of taking independent advice before executing the BFA is so that you can better understand whether the agreement is fair.
If you require independent legal advice, telephone our lawyers at the Gold Coast Legal Advice Hotline on (07) 5532 9744