Solicitor’s Certificate – FAQ – Guarantor Advice
What am I providing?
The most common lender request for a Guarantee & Indemnity is due to a Trust (including a Self Managed Super Fund (SMSF)) or active trading company, borrowing funds
As the loan will be held by the trust, SMSF or company, a lender will require a personal guarantee from some or all of the interested parties, such as directors, superannuation fund members, shareholders, partner/spouses, etc to guarantee/ensure repayment the debt
What is the Solicitor’s Certificate?
This is a certificate (commonly referred to as an Australian Legal Practitioner’s Certificate 2) which states that a registered solicitor has provided the guarantor with legal advice about the effects of the guarantee & indemnity they are signing before they do so
In a nutshell, this entails:
The general nature and effects of the documents required to be signed by the guarantor;
That if the borrower defaults in payment or in other obligations to you the guarantor would be liable to make good that default which could involve all amounts owed by the borrower to you and substantial arrears of interest; and
That the giving of a guarantee involves considerable risk, including the risk of losing any security, property and other assets and requires very careful thought
The purpose is to provide assurance to a lender that that guarantor will not later claim that they didn’t understand the guarantee & indemnity, in an attempt to avoid their responsibility to guarantee the debt
How can CAC Legal help?
As Melbourne’s leading provider of Solicitor’s Certificates, we offer an efficient pain-free service at a fixed fee
We review the documents in advance, allowing you to then attend our Collins Street office for a seamless advice & signing process
Many of our clients are repeat clients, with the friendly and pragmatic service far exceeding competitors
How long does it take?
As an expert in this advice, we streamline the process. The face to face consultation is usually around 20 minutes in length
We do not treat it like a seminar. There are a few important items to cover, however, with an in-depth understanding of trusts, SMSF’s, corporations, etc, this explanation can be simplified into a quick and easy to understand discussion
What is the lead time? I have a settlement upcoming
With limitations, sometimes same business day advice is available
However, next business day is always available and we will work around your existing commitments
Who needs to attend?
Just the person/s providing the guarantee
If this is you and a spouse/partner, you will both need to attend the appointment, at the same time
What documents do I email for the review?
Either the whole package received from your lender OR at a minimum;
Loan Agreement
Guarantee of Indemnity/Deed of Guarantee
Any specific Solicitor’s Certificate your lender has provided (if none, we will provide the standard Australian Legal Practitioner’s Certificate 2)
What will I need to bring?
Some or none of the documents – depending on the lender. This will be confirmed on receipt of the documents to review
Your Passport and Driver’s Licence – or appropriate alternative ID
Where are you located?
Level 8, 90 Collins Street, Melbourne
A short 5-10 minute walk from Parliament & Flinders Street Stations
Directly in front of the 101 Collins Street tram stop
How do we proceed?
Feel free to call on (03) 9039 6567 or simply email admin@caclegal.com.au with your documents and phone number
For pricing, please see here
