Independent Legal Advice for Private and Non-Bank Loans
Private, non-bank and second mortgage lenders commonly make a solicitor's certificate of independent legal advice a condition of the loan, and will not release funds until it is signed.
- Advice on the loan agreement, security and guarantees
- Up to 2 borrowers or guarantors covered in 1 Teams meeting
- $800 + GST fixed fee
- Usually completed within 24 to 48 hours of receiving the documents
Why private lenders insist
Shorter Loans, Firmer Terms
Private and non-bank loans are often used where timing matters: bridging a purchase, borrowing against a second mortgage or caveat, completing a development, or funding a company that a bank will not lend to. Because these lenders rely heavily on their documents, most want independent advice on the record before settlement.
Compared with a bank loan, private loan documents more often include default interest that applies from the first missed payment, short terms with the full balance due at the end, fees on early repayment, and powers to take possession and sell soon after a default. Many are made to companies or trusts, with the directors guaranteeing personally.
The meeting goes through each of those terms as they appear in your documents, so you understand what the loan costs if everything goes to plan and what it costs if it does not.
What we go through
The Terms That Matter Most on a Private Loan
The certificate is signed at the end of the meeting. The meeting itself is about these terms.
Term and repayment date
When the loan must be repaid in full, and what happens if a refinance or sale is not in place by then.
Interest and default interest
The ordinary rate, the higher rate that applies on default, and exactly what triggers it.
Events of default
Missed payments and the other events that allow the lender to act, some of which are not obvious from the loan summary.
Enforcement
How quickly the lender can take possession and sell, and how any shortfall is recovered.
Guarantees
Who is guaranteeing, whether each guarantee is limited, and whether it covers other money owed to the lender.
Second mortgages and caveats
What it means when the lender sits behind a first mortgage or relies on a caveat, and how that affects the property.
Taking out a private loan?
Talk to UsThe process
How the Advice Is Arranged
Send the loan pack
The loan agreement, mortgage or caveat documents, guarantees and the lender's certificate form, from you, your broker or your conveyancer.
We review the documents
We check the pack is complete and identify the terms that carry the most cost or risk before the meeting.
Teams meeting
The borrowers or guarantors attend, we sight identification and go through the documents with them.
Certificate returned
The documents are signed and the certificate goes to you, your broker or the lender so funds can be released.
What the $800 + GST fee covers
Review of the loan, security and guarantee documents, 1 Microsoft Teams meeting for up to 2 borrowers or guarantors attending together, and a signed certificate for each of them. Advising more than 2 people, or advising people separately where their interests differ, is quoted before we start.
Have the loan documents?
Send Them ThroughWhy the Advice Matters on a Private Loan
Costs grow quickly on default
Default interest and enforcement costs can add to the debt quickly once a payment is missed.
Exit dates are firm
A short term assumes a refinance or sale will be ready in time. The documents set out what happens if it is not.
Not proceeding is a valid outcome
The certificate records that you understood the documents. Deciding not to sign on those terms is also a legitimate result of the advice.
Questions about a private loan?
Ask UsRelated independent legal advice services.
Questions About Private Loan Advice
Why does a private lender require independent legal advice?
Is this different from independent legal advice for a bank loan?
Does the advice cover second mortgages and caveat loans?
Can 2 borrowers be advised together?
Do you advise whether to take the loan?
How long does it take?
Ready to arrange the advice?
Contact UsSend Us the Loan Documents
We will confirm what the lender needs and book a Teams meeting with everyone who is signing.
Send Us the Loan Documents