Guarantor Advice
If you guarantee a loan for a family member or friend, you’re known as the guarantor. You are responsible for paying back the entire loan if the borrower can’t.
Where banks and other lending institutions grant loans to Borrowers accompanied by a third party guarantee for repayment, the lender will often require the Guarantor to obtain independent legal advice about their rights and obligations, and potential consequences in the event that the Borrower defaults on their repayments.
There are various risks involved for a guarantor, so a financial institution will usually require that they first obtain independent legal advice before signing any guarantee documents. Alternatively, without the banks requirement, you may wish to obtain legal advice on the loan terms before signing. We regularly provide tailored advice to individuals who choose to provide a personal guarantee in favour of other individuals.
The Process
- You are to email or drop off the relevant documents.
- We will provide you with a fee proposal.
- Once accepted, solicitor will review the documents in advance of a face-to-face meeting.
- Within 24 hours a face-to-face meeting scheduled at our office to provide the advice and sign documents.
- Documents returned to the relevant parties.
