If you are in the process of applying for a loan or guaranteeing somebody else’s loan, the bank or lender you are dealing with may ask you to get a solicitor’s certificate. If you already understand the implications of getting a loan or going guarantor, (see our blog post about going guarantor if not!) you might find yourself wondering what a solicitor’s certificate is, or why you need one at all.
So, What Is It?
A solicitor’s certificate is a document prepared by, you guessed it, a solicitor. The certificate itself is like a statement written and signed by your solicitor to say when they spoke to you, and what about.
Before it can be provided, your solicitor must review the entire agreement you are being asked to sign, including any related documents. Once they have read the all the materials themselves, your solicitor will explain the contents to you, to make sure you have a complete understanding of the terms of the agreement.
Why Do I Need It?
Banks will often ask for a solicitor’s certificate as a way of covering themselves in case there are future problems with your agreement: It is evidence that you understood what you were agreeing to, and prevents you from arguing you did not know about a certain term, or didn’t have an opportunity to get advice before signing.
Beyond the requirements of your lender, the examination and explanation of the agreement your solicitor provides can be useful for your own understanding. Often the close reading performed by your solicitor will reveal some fine print you might have missed, which can assist you to make a fully informed decision about whether the agreement is right for you.
Other Considerations
Most importantly, your solicitor can’t give you financial advice. While they can help you understand what the terms of the agreement mean in a broad sense, you should always see your accountant or financial advisor before signing anything, even if you already have a solicitor’s certificate.
Only these professionals can provide personalised advice about how the terms of an agreement might affect you or your family.
It is also important that each party receives their own, individual legal and financial advice on the agreement, and how it could impact them specifically. This can sometimes be overlooked where the parties to an agreement are related (such as a parent going guarantor for their child). Even if there are no concerns about one party pressuring another, taking this step helps prevent any unforeseen misunderstanding or disappointment, and is always worthwhile.
When you go to see your solicitor, it is also important that you personally attend, and bring 100 points of ID with you to allow for your identity to be verified. Your solicitor must verify your identity before issuing the certificate so they can be satisfied they gave their advice to the right person.
Signing a solicitor’s certificate must be done face-to-face with a lawyer; it cannot be done by Zoom or telephone.
If you need the services of an interpreter, you must have one present when you go to see your solicitor. If this is a relevant factor for you, it should be raised with your solicitor before your appointment, so that they can assist you to book an interpreter.
If you have been asked for a solicitor’s certificate, the helpful and knowledgeable team at Wakefield, Vogrig & Boote Lawyers are ready to assist you. If you would like to speak to someone about a solicitor’s certificate or want to start the process of having one prepared, please get in touch with us at our Warragul or Drouin offices today, or book an appointment online.
Authors:
Martin Bridson – Lawyer
Disclaimer: The information in this post is general in nature. This does not constitute legal advice and should not be relied on as such. Please contact one of our Lawyers if you are seeking advice about a specific legal matter.
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