When purchasing property, most people find themselves needing to borrow money from a Lender to assist with the various costs associated with the purchase.
There are also occasions where you may elect to act as a personal Guarantor on a loan for a family member, friend, or company.
Regardless of the scenario, in any situation where you are liable to a Lender who is advancing funds for any purpose, the Lender will require Loan documentation to be signed, creating and evidencing a legal obligation for those funds to be repaid and the manner and timeframe in which repayments are to be made.
Loan documentation can be intimidating and difficult to understand for a lot of people, and rightfully so. It is paramount that you understand exactly what it is that you are signing up for and what your obligations are under the agreement. Failure in understanding your obligations can leave you significantly and financially impacted for many years to come.
Due to responsible lending obligations, many Lenders will include in their Loan Documentation a Certificate to be completed by a Solicitor to confirm that you have obtained your own independent legal advice on the contents of the documentation and the legal obligation that is being created.
It is extremely important that you engage the services of a Legal Firm that understands how overwhelming it can be to make such a significant commitment and who will take the time to explain the contents of the documentation to you in a manner that enables you to fully grasp the entirety of the legal obligation that you are undertaking.
In the event that you are acting as a Guarantor on a loan, it is especially important to understand not only what your obligations are, but also the obligations of the party you are assisting who, in the event of defaulting under the obligations of their own Loan agreement, could result in you becoming personally liable for their debts.