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What is an Australian Legal Practitioner’s Certificate 2?

What is it?

The ‘Australian Legal Practitioner’s Certificate 2’ is an official form issued by the Law Institute of Victoria (LIV) for use by lawyers whose practising certificates are issued by the LIV.

It must be used by Victorian lawyers who provide legal advice to personal guarantors and are requested to provide a legal advice certificate to the proposed lender of the loan. 

Why must it be used?

The Legal Profession Solicitors Rules that govern Victorian Lawyers, mandates the use of this form under its Rules.

This prevents Victorian based lawyers from using a lenders own certificate or any other form of evidence that legal advice has been given. 

Does it have to be used by all lawyers in Australia?

No. If the lawyer providing the advice is based in another State in Australia (Queensland for instance) then they are not restricted by the same rules as Victorian based lawyers. 

Queensland based lawyers are free to use their own certificates of legal advice, or can utilise the Victorian form known as the Australian Legal Practitioner’s Certificate 2.

Can ILA Australia deal with Victorian clients?

Yes. We regularly service guarantor clients all over Victoria including Melbourne, Geelong, Ballarat and Bendigo. 

As we are an online service, we have also serviced clients in more regional areas of Victoria where access to lawyers might be more scarce or inconvenient ‘in-office’. 

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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 Legal Advice to Personal Guarantors

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 Legal Advice to Personal Guarantors

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 Loan Legal Advice to Personal Guarantors

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 of loans

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.

What Legal Advice?

Legal Advice required by Personal Guarantors as a Special Condition of a Loan. Including:

  • Legal Advice to Parents Guaranteeing a Child’s Home Loan.
  • Directors going Guarantor for Business Lending.
  • Beneficiaries Guaranteeing a Trusts Loan.
  • SMSF Members giving Guarantees for an SMSF LRBA.
Need a Witness?

No Problem! Some lenders require the solicitor providing the legal advice to witness a statutory declaration stating you received the legal advice.
We can witness those documents online, via an audio-visual link.
We can either sign entirely electronically, or exchange ‘wet’ signed documents via Express Post.

Need a Wet Signature?

No Problem! 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 plus we express post the original certificate to you, the bank, the lender or the broker, as you might wish to instruct us to.