ILA AUSTRALIA
Independent Legal Advice for Personal Guarantors
Independent Legal Advice for Personal Guarantors of Home Loans, Business Loans, Overdrafts and Bank Guarantees, SMSF Loans, and more. All Online, Fast, Efficient and Affordable.
Our Legal Services
Independent legal advice certificates are required by many lenders when providing loans to a company, and lender requires extra security from a personal guarantor. Because the personal guarantor is not ‘directly’ liable to repay the loan to the lender, legal advice is required to ensure the guarantors know their own personal risks and obligations to pay money to the lender in the event the borrower is in default of the loan.
We focus on providing this independent legal advice to personal guarantors for many loan types, and act quickly, efficiently, and all for fixed fees published on our website.
Home Loan Guarantors
A legal advice certificate confirming that a personal guarantor has obtained independent legal advice about the risks and obligations associated with being a third-party guarantor to someone else’s financial lending.
Business Loan Guarantors
Business lenders often requires directors, shareholders or others to personally guarantee a business loan. It acts as extra security and when the guarantor is not going to benefit, they likely need to obtain legal advice on the guarantee terms.
SMSF Guarantors
For super fund loans, each SMSF Member must usually personally guarantee the borrowing for the SMSF Trustee. You’ll need to see a lawyer to obtain legal advice (as personal guarantor) on the effect of these SMSF mortgages and the potential risks involved.
Investment Property Guarantors
Lenders often require directors, shareholders or trust beneficiaries to personally guarantee a property loan. It acts as extra security and when the guarantor is not going to benefit, they likely need to obtain legal advice on the guarantee terms.
Legal Advice Online... face to face... when you need it!
We appreciate you’re busy and visiting a lawyer during usual office hours is hard. We operate extended hours to ensure you get the legal advice you need for your personal guarantee when you need it, and at the least inconvenience to you!
Why Work With Us
Qualified Solicitors
Fully Qualified and Registered Solicitors that are experienced in providing independent legal advice to personal guarantors.
Quick & Efficient
We know our service is often needed last minute, and we operate on the basis you want it done fast.
Convenience
We only operate online and make ourselves available outside of usual business hours to suit your busy schedule.
Fixed Fees
We offer 'no surprise' fixed cost for the review of your loan documents, legal advice meeting and certificates needed.
So how does it all work... and where do i start?
Firstly, use our online booking portal to engage us. It will guide you through to whole process of making your initial booking and engaging us to act. Then you’ll receive a electronic verification of your identify (we need to know who you are). Then we can arrange a convenient online meeting time. We’ll review your loan documents, provide our advice and issue a legal advice certificate (both electronic and ‘wet’ signed).
Lenders We Cover Include...
We cover almost all banks, lenders and financiers in our fixed fees for legal advice.
Need to know more?
Take a look at our articles to find out more about the issues that concern personal guarantors and the services we offer.
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FAQ
What is the cost of getting independent legal advice for a personal guarantor?
The cost varies depending on the particular type of loan you are being a personal guarantor to.
We publish our fixed fees for each type of loan so you know upfront how much it will cost.
Just click on the service that best describes the type of loan you have to find out our current fixed fees.
Why does it cost more for 2 persons to get the advice?
We provide legal advice to each personal guarantor individually and separately.
We do not provide joint advice sessions.
This is to make sure that each person gets to listen to the legal advice properly, without distraction, and with ample opportunity to clarify the legal advice provided and ensure you do fully understand the nature of the personal guarantee.
How long does it take to provide the legal advice?
Usually, the legal advice session will take around 30-45 minutes to complete.
However, if your loan is complex, or you have lots of questions to ask, then it may take a little longer than that.
Rest assured, questions are good and there is no time limit on our legal advice session.
We want to make sure you understand the risks and the obligations upon you as a guarantor.
How quickly can you provide the legal advice once i book?
We aim to work with you to complete the whole process within the timeframe that suits your own circumstances.
If you need it completed urgently then will do our best to deal with it the same day.
However, ordinarily, once you have completed your booking, most are completed within 3-4 days.
The time it takes is often due to the processing your verification of identity, and finding a suitable and convenient time to hold our meeting.
Why do lenders require independent legal advice from directors and shareholders?
Whilst you might consider a company “yours” it is a separate legal entity.
Directors and shareholders are not responsible for the company’s debts.
So, lenders who consider the company may be at some risk of not paying back a loan, would usually insist on personal guarantees being provided by each director and shareholder.
In simple terms, agreeing to be a personal guarantor, now makes you responsible for that particular debt owing by the company to the lender.
Why do I need to get advice on my SMSF loan?
Loans to a Self-Managed Superannuation Fund are highly regulated, and are provided directly to the SMSF Trustee.
The Superannuation Legislation protects the SMSF Trustee from enforcement by lenders in the event the loan is in default.
So, in order to protect their interests, and lessen any risk of financial loss, lenders require a personal guarantee from each SMSF member.
The personal guarantee will make you personally responsible for the SMSF debt in the event anything goes wrong.
What are the risks to parents being guarantors to their kids home loan?
In the current property market, getting on the property ladder is very difficult for first time buyers.
Many banks and lenders have introduced products that help by allowing the equity in the parents home to be used as security for the whole (or just a portion) of the children’s home loan.
Mum and Dad become personal guarantors of the home loan (usually limited to an amount of between 10-25%), and secure their personal guarantee with a mortgage registered against their own home.
The parents are not responsible for the loan day-to-day, but are at risk in the event that the kids home loan is in default, and the child’s home is sold, without sufficient sale proceeds to cover the whole loan due and owing (including all interest and other costs) to the bank.
We discuss the full risks and obligations to personal guarantors of home loan during our advice sessions.
Can you provide a 'wet' signed independent legal advice certificate?
Yes. Once we have completed your legal advice session, we provide you with a ‘wet’ signed independent legal advice certificate.
We will also provide you with a scanned copy of the certificate immediately after our legal advice session.
We express post the original certificate to you, the bank, the lender or the broker, as you might wish to instruct us to.