There are no simple ways to borrow money these days!
Lenders often require the borrower or guarantor (you or your family member) to obtain independent legal advice before they will advance you any money.
In many cases, you may need an Australian Legal Practitioner's Certificate when borrowing money. This is a certificate lawyers sign and give to the bank after the legal advice is provided.
As lawyers, we need to be satisfied that you understand the terms of the loan, guarantee, mortgage and other security documents and arrangements. We sign the certificate and confirm (to the bank) that you understand the terms, understand the consequences of default if you do not make required payments, and that you are not under any duress to proceed with the loan.
Noy Legal provides this advice and these certificates. We often receive last minute requests to provide the certificates, and clients and brokers sometimes think that the task involves no more than a cursory glance at the documents and witnessing a signature. This is not the case!
We urge borrowers and guarantors to contact us early in the loan process if the lender requires the advice and certificate.
Ask your broker and lender – will I need this advice and the certificate and if so, when will loan documents be ready? Our legal costs depend on the complexity of the documents, the lender’s requirements and how many certificates are required.
Please send Justine Noy an email justine@noy.com.au if you have any questions.
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