Independent Legal Advice

Investment Property Loan Guarantors

When companies or trusts borrow money to purchase an investment property a lender will often request or insist on the directors, shareholders or primary beneficiaries provide a personal guarantee.

The personal guarantor is a security for the banks to ensure repayment of any property loan to the lender, in the event the corporate borrower fails to pay.

You may have to obtain legal advice and provide a personal guarantor certificate or a legal advice certificate to evidence that you have obtained independent legal advice about the risks and obligations associated with entering a deed of guarantee.

At ILA Australia we provide that independent legal advice to those acting as personal guarantors and supply the required legal advice certificate to the lender.

Online Face-to-Face Meetings

We provide legal advice to personal guarantor members of self managed superannuation funds, via videoconference. You can access our meeting link using a smartphone, tablet, laptop, or desktop computer, regardless of their location within Australia.

Fast & Efficient

We understand the urgency required to SMSF Loans and the importance of timely legal services. We are committed to providing efficient and professional advice, completing all necessary legal documents within 2-5 days. In cases of true urgency, we can accommodate same-day turnaround.

Fixed Fee Legal Advice

Our pricing is straightforward and easy to understand. We're upfront about all the fees and charges, so you can feel confident there won't be any surprises. You'll always know exactly what you're paying for.

Trusted & Experienced

As a SMSF Member, you will take on significant legal and financial obligations on behalf of your self-managed super fund. We'll explain your responsibilities, potential risks, and consequences, so you can effectively managed that risk.

Lenders We Cover Include...

We cover almost all banks, lenders and financiers in our fixed fees for legal advice.

Westpac, ING Direct, Bendigo Bank, Judo Bank, Macquarie, NAB, Commonwealth Bank (CBA), ANZ, Bankwest, Suncorp Bank, Bank of Queensland (BOQ), loans.com.au, firstmac, La Trobe, AMP, St George, Pepper Money, Bank of Melbourne, RAMS, RACQ, Resimac, Auswide Bank, Bank SA, Heritage Bank, Qudos Bank,

How much does it cost to get independent legal advice for a guarantor of a property loan?

Our Fixed Costs

Our fixed fees cover all that is required by banks and lenders requirements for providing legal advice and the legal certificate.

$ 695 Inc GST

$ 995 Inc GST

Independent Legal Advice Certificate

So whats the process...

Following our process is the fastest way to get your legal advice sessions and for us to issue your legal advice certificate for director, shareholder or a beneficiary guaranteeing a property loan for an investment property.

1. Gather your Documents

We’ll need PDF copies of all of your loan documents, the guarantee documents, all terms and conditions, and any draft legal advice certificates.

Be ready to upload them all when completing our online booking portal.

2. Make a booking

The online booking portal is designed to collect all the contact details and information we need to sign you up as a client, and begin processing your booking.

Be sure to check your contact details, as that can delay the process.

3. Verify your identity

We need to know whose engaged us. You’ll receive a text message and email from our provider to upload photos of your ID (100 points), take a selfie and a short video.

We can’t meet online until you’ve completed your ID verification.

4. Legal Advice & Certificate

We’ll send you a link (via email) to access our online appointment to provide our legal advice (1 person at a time).

Once complete, we’ll issue our independent legal advice certificate to present to the lender.

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.

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.