We're doing some refinancing and the bank are insisting my wife gets a solicitor to advise her and countersign her guarantor certificate, even though we have done this many time with them. Any way to get around this, and if not, any advice on good (and cheap?!) solicitors who can perform this basic task, she is in Eastern suburbs of Melbourne? thanks
Melbourne Solicitor for bank guarantee advice
- Thread starter Lawry
- Start date
No much you can do about this. Lenders often require the guarantors of a loan to obtain legal advice, regardless of how closely they're involved in the deal.
The really silly case is when you've got a couple guaranteeing a loan to a trust of which they're the guarantors, the sole directors of the trustee company, the appointers and only beneficiaries. Banks require guarantors to get legal advice even though the guarantors are the only people involved anywhere in the transaction, at any level.
It's a legal issue and the law often isn't about common sense, it's about paying to create a paper trail.
The really silly case is when you've got a couple guaranteeing a loan to a trust of which they're the guarantors, the sole directors of the trustee company, the appointers and only beneficiaries. Banks require guarantors to get legal advice even though the guarantors are the only people involved anywhere in the transaction, at any level.
It's a legal issue and the law often isn't about common sense, it's about paying to create a paper trail.
I had to do this a few months ago with an IP in my SMSF. I got a solicitor from the eastern suburbs to visit me and my wife after hours & it cost $300.
Feel free to PM me if you want her details.
thanks for your responses,
situation is a new loan in my name, because I have the serviceability, PPOR as security is in both names, so she needs to sign as guarantor, to acknowledge the PPOR is at risk if I (i.e. we) default on the loan.
we've managed to find a local solicitor, recommended by a friend who says they will do it for about $100, several others wanted $220, one wanted $500+..
we will see what sort of service we get, but in reality we both understand what we are doing and the whole thing is not an issue for us - so it is of no value, just an expense we have to incur to get the loan across the line, as long as we can get a solicitor to sign off, we're good
situation is a new loan in my name, because I have the serviceability, PPOR as security is in both names, so she needs to sign as guarantor, to acknowledge the PPOR is at risk if I (i.e. we) default on the loan.
we've managed to find a local solicitor, recommended by a friend who says they will do it for about $100, several others wanted $220, one wanted $500+..
we will see what sort of service we get, but in reality we both understand what we are doing and the whole thing is not an issue for us - so it is of no value, just an expense we have to incur to get the loan across the line, as long as we can get a solicitor to sign off, we're good
