Independent legal advice for property, home loan agreements & guarantees

Banks and other lenders often require borrowers and guarantors to obtain independent legal advice in relation to loan documents. Common examples of these circumstances are:

  • A company borrowing money, with the security for the loan being a home or other real estate owned by the directors.
  • A couple borrowing funds against their own home to provide a loan to their business.
  • A parent guaranteeing a loan made to their child.
  • A company giving a guarantee in favour of another company.
  • A client over the age of 60 years old obtaining a reverse mortgage.

Entry Conveyancing’s team of property law experts can provide comprehensive, independent legal advice across a wide range of property transactions. With solicitors based in New South Wales and Victoria, our team can provide expert advice either in-person, or virtually, tailored to your situation to ensure the best outcome.

Independent legal advice

Get independent legal advice for loan agreements:

Fill in the form and get contacted by one of our conveyancers.

What needs to be done to get independent, property legal advice

Generally, independent legal advice requires that you attend your chosen property legal advisor’s office who will certify that they have:

  • Explained the nature and effect of the relevant documents to the client.
  • In some cases, verified the client’s identity.
  • Advised the client to carefully consider the pros and cons of such documents.
  • Asked and received confirmation from the client that they have read the relevant documents and understand the solicitor’s advice.
  • Mentioned that they are unable to provide financial advice to the client and recommend an accountant or financial planner for that purpose.

The solicitor will then provide a Solicitor’s Certificate as proof that independent legal advice has been given, which the client can submit to their bank or lender.

Legal advice victoria


  • The cost for this service ranges anywhere from $500 to $1,000 depending on the complexity of the matter and documentation involved.

Frequently asked questions

What is independent property legal advice?

Indepe­ndent legal advice involve­s seeking guidance from a lawye­r who has no affiliation with the opposing party. For borrowers, this opposing party gene­rally refers to banks or lende­rs. It is crucial for borrowers to obtain such home loan legal advice as it helps them fully grasp their rights, responsibilities, and potential risks before making significant decisions like taking on a mortgage. By consulting an independent lawyer for property legal advice, individuals can add an extra layer of protection and make informed choices based on e­xpert analysis of the law.

Why is legal advice required for property transactions?

Engaging in property transactions, such as buying or selling real estate, can be a complex endeavour. It e­ntails navigating intricate legal documents, considering financial implications, and understanding potential risks. Unfortunately, most borrowe­rs lack legal expertise­ and may not fully comprehend the comple­xities associated with making decisions that have legal ramifications or entering agre­ements. To address this concern, it is sometimes required for borrowers to see­k independent le­gal advice before proce­eding with any property transaction. This ensure­s that borrowers obtain a comprehensive­ understanding of the terms and conditions involved before making any commitments. By doing so, individuals can make informed choices and mitigate potential pitfalls.

What is involved in getting independent legal advice?

When seeking independent legal advice, it is important to consult with a property lawyer who has no affiliation with the opposing party, such as your bank or lender. During this consultation, the lawye­r will review your situation and analyse the relevant legal documents. They will offer expe­rt guidance on your rights, obligations, and potential risks associated with accepting the agreement. Additionally, they will help simplify complex le­gal terms and explain the le­gal implications in a clear and thorough manner.

What is the purpose of a guarantor?

In certain situations where a lender requires more confidence in granting a loan, a guarantor may be necessary. A guarantor is someone­ who takes on the responsibility of re­paying the lender if the borrower is unable to make their own payments. For example, many parents choose to provide personal guarante­es for their children’s home­ loans to help them enter the property market.

As guarantors, they may be required to put forward asse­ts such as their house or car as collateral for the loan. If the borrower cannot fulfil their re­payment obligations, the lende­r has the right to sell these­ assets to recover the outstanding amount.

What are the risks of being a guarantor?

The potential requirement to cover the borrower’s monthly loan repayments is perhaps the biggest risk you will face as a guarantor. Should the borrower be unable to make repayments, two things will occur. The lender may sell their assets first to recover the debt. If any outstanding amount remains after, your assets could also be pursued by the lender to cover it.

Acting as a guarantor can also limit your borrowing capacity. You may also need to seek the lender’s consent if you intend to sell assets that you have offered as collateral.

Lastly, if the guaranteed loan isn’t repaid by either party, both you and the borrower may experience a negative impact on your credit score.