Solicitor's Certificate (Guarantee Advice)

When you're asked to guarantee a loan, it's crucial to fully understand the legal and financial implications before you sign any documents. A Solicitor’s Certificate is often required by lenders to confirm that you, as a guarantor, have received independent legal advice regarding the risks associated with your commitment.

What is a Solicitor's Certificate?

A Solicitor’s Certificate is a document issued by a lawyer to confirm that you have received advice regarding your role as a guarantor for a loan. This is essential because guaranteeing someone else's loan means you are agreeing to take on responsibility for their debt if they fail to repay. It ensures that you fully understand the risks, including the possibility of losing your property if the borrower defaults on the loan.

Why Do Lenders Require a Solicitor's Certificate?

Lenders typically require a Solicitor’s Certificate for third-party guarantees to protect themselves from the risk that the guarantor may later claim they did not understand the implications of the documents they signed. It’s a safeguard ensuring that the guarantor is fully aware of their obligations, risks, and legal rights before committing to the guarantee.

Common situations where a Solicitor's Certificate may be required include:

• Parents guaranteeing their child's home loan.
• Spouses guaranteeing loans for their partner’s business or investment property.
• Company directors guaranteeing the loan for a business or trust.

Our Guarantee Advice Service

Our services ensure that you understand the risks and responsibilities before you sign any documents.

Here’s what our service entails:

• Document Review: We’ll review the loan and guarantee documents provided by the lender to ensure we understand the full scope of the agreement.
• Independent Legal Advice: We’ll explain the legal terms of the guarantee, the risks involved, and the implications of default. You’ll have the opportunity to ask questions and fully understand what you’re agreeing to.
• Witnessing Your Signature: Once you’re satisfied with the advice, we’ll witness your signature on the relevant documents, including the Guarantee and Indemnity, Mortgage, and Statutory Declaration.
• Issuing a Solicitor’s Certificate: If the lender requires it, we’ll provide you with the necessary Solicitor’s Certificate to confirm that you have received legal advice.

Contact Us Today

If you’re required to obtain a Solicitor’s Certificate or if you’re considering acting as a guarantor for a loan, contact Vogt Legal today. Our experienced team is here to guide you through the process and ensure that you fully understand your legal obligations before signing anything.