An independent solicitor’s legal advice certificate in Australia confirms that a person has received legal advice relating to loan and guarantee from a solicitor.
Why do you need a Solicitor’s Certificate?
The purpose of the solicitor’s certificate is to show the lender that the customer (client) fully understands the legal nature of what they are signing. There have been cases were a loan or guarantee has been set aside because the borrowers or guarantors were found to not have understood what they were signing. The Amadio case, (Commercial Bank of Australia v Amadio (1983) 151 CLR 447; [1983] HCA 14 (High Court of Australia)), is Australia’s most well known and frequently referred to case regarding unconscionable conduct and dealings by a bank which resulting in the guarantee in question being set aside.
- Individuals
From
$400
plus GST- Confirming Identity
- Loan and Guarantee Advice
- Witnessing execution of all documents, i.e. Mortgage, loan and guarantee
- Certifying true copies of identity documents (if required)
- Please note additional costs applies for acting on your behalf and liaising with the lender
- Couples
From
$500
plus GST- Confirming Identity
- Loan and Guarantee Advice
- Witnessing execution of all documents, i.e. Mortgage, loan and guarantee
- Certifying true copies of identity documents (if required)
- Please note additional costs applies for acting on your behalf and liaising with the lender
Costs
The cost of witnessing loan or guarantor documents is an expensive exercise which can cost hundreds of dollars (more in some cases). The reasons for this are:
- The solicitor must understand why the customer requires the loan or guarantee
- The solicitors must review all relevant loan or guarantor documents prior to the customer’s appointment with them
- The solicitor must check that the solicitor’s certificate provided by the lender complies with rule 11 of the Legal Profession Uniform Legal Practice (Solicitors) Rules 2015.
- At the appointment, the solicitor must thoroughly go through the documents with the customer and make sure they understand the risks involved and their obligations under the loan or guarantee
- If the customer does not speak English then an interpreter’s service will need to be arranged at additional costs
- The solicitor must verify the customer’s identity
- The solicitor must obtain a form of acknowledgement in the form approved under RULE 11 Legal Profession Uniform Legal Practice (Solicitors) Rules 2015
- The solicitor will have to make a detailed file note as to their meeting with the customer in case a customer claims (and they occasionally do) they were not properly advised at the time of signing the loan or guarantee documents
- The solicitor may also have to send the documents directly to the lender
- Occasionally the solicitor may need to be involved in the final drawdown of the loan although this is less common.
Risk and Clients Capacity
It is a matter of risk management for the solicitor when considering if they are willing to provide a solicitor’s certificate. If the solicitor feels the client may lack the capacity to understand and then sign the documents, it is appropriate for the solicitor to request a letter of capacity from the customer’s regular GP.
Contact us today to discuss what option may be available to you.
Please note, the above contains very general information on the subject matter and should not be regarded as legal advice. Legal advice should always be sought as to your specific circumstances.
- Companies, Trusts, 3 or more Guarantors
From
$600
plus GST- Confirming Identity, SMSF or trust or company information
- Loan and Guarantee Advice
- Witnessing execution of Mortgage, Loan and Guarantee documents together with Certifying true copies of identity documents (if required)
- Note: this part applies to 3 or more Guarantors, Companies, trusts, Multiple Loans, Reverse Mortgage Advice, Private Lending (e.g. Non-bank) Loan Advice
- Please note additional costs applies for acting on your behalf and liaising with the lender
Get in touch, Today!
