Independent Legal Advice - What is it?
If you have ever had to guarantee loan for a company or a family member, you will have had to obtain independent legal advice certificate, also known as an independent solicitor’s certificate.
An ILA is a detailed review with an independent lawyer of the obligations and liabilities when providing a guarantee for someone else. While they can be seen as just another document to obtain, they are anything but and should always be treated with careful consideration and attention.
Meeting with a solicitor to discuss a guarantee and obtain a certificate will usually take an hour, and will require 100 points of ID to allow the solicitor to verify your identification.
The certificate provided by the Solicitor will involve an explanation of the general nature and effect of the guarantee documents, including explaining the responsibilities of the guarantors should the borrower default on their obligations, and the potential consequences should this default occur.
The certificate does not provide advice on the viability or financial risks of the contract or document being guaranteed, nor will it provide any advice on the parties to meet their obligations outside of the guarantee. It also involves confirmation from the guarantors that they understand their obligations, and the effect of providing the guarantee.
If you have been asked to obtain an independent advice certificate, contact SPM Law for an obligation free discussion on 07 5440 4800.
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