Banks and financial institutions often ask for a personal guarantee when lending to a company or to a person with limited equity in a property. The risk undertaken by a guarantor is high and banks usually require a guarantor to seek independent legal advice prior to signing. That’s one of the ways banks avoid a guarantor later claiming they did not understand the effect of the document.

Whether or not a solicitor’s certificate is required by the bank, any person considering signing a guarantee should obtain independent and comprehensive legal advice.

The expert property lawyers at Parke Lawyers can review mortgage and loan documents and provide you with a clear understanding of the effect of the documents.  If necessary, we can even provide a same day service.

Whilst no one expects to default on a loan, the consequences can be financially devastating to a guarantor – including loss of assets and even bankruptcy. Whilst the ability to negotiate with a bank the terms of a guarantee, it is at times possible. It is important to identify what can be done to limit the risk and exposure of the guarantor.

Your Property Law Team

Property Law specialist Brian Reckas
Brian Reckas
property law specialist Mark Gomez
Mark Gomez
planning lawyer mitchell carnes
Mitchell Carnes
James Burke - Paralegal - Parle Lawyers
James Burke

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