A Solicitor's Certificate is commonly required where a borrower or guarantor is entering into a significant financial commitment. It is not simply a witness to your signature. Before issuing the certificate, the solicitor must review the relevant documents, explain your legal rights and obligations, discuss the risks involved, answer your questions, and confirm that you understand the consequences of signing.
Independent legal advice helps protect both the client and the lender by reducing the risk of future disputes regarding misunderstanding, undue influence or unconscionable conduct.
Whether you are guaranteeing a family member's home loan, providing security for a commercial loan or borrowing through an SMSF, your lender may require a Solicitor's Certificate before settlement can occur.
Your solicitor must carefully review the loan documentation, explain its legal effect, discuss your obligations and the risks involved, answer any questions you may have and ensure that you understand the transaction before the certificate can be issued.
A loan or guarantee can have significant consequences if the borrower defaults or the lender exercises its rights under the loan documents. Independent legal advice ensures you understand those risks before deciding whether to proceed.
The appointment is conducted by an Australian Legal Practitioner who will explain the transaction in plain language and ensure you understand the legality of the matter before signing.
Commercial lending, SMSF borrowing and transactions involving multiple guarantees may require additional time to ensure appropriate advice is provided.
Once we have reviewed your lender's documents, we will provide a fixed-fee quotation, so you know the cost before we commence work.
If a signed certificate attached to the verification of ID form is required for a Victorian solicitor’s certificate, rule 11.2 requires the solicitor to verify the signatory’s identity face-to-face and in person under the prescribed Verification of Identity Standard. Video calls and third-party remote verification do not comply.
Accordingly, advice may be provided online, but the solicitor cannot validly issue the prescribed certificate entirely online.
You will generally be asked to provide documents such as your Australian Passport, Driver Licence, Medicare Card or other government-issued identification. We will advise you of the specific documents required before your appointment.
It ensures that the person receiving independent legal advice is the individual entering into the lending transaction and forms part of our professional obligations when issuing a Solicitor's Certificate.
Independent legal advice must be provided free from any actual or perceived undue influence, coercion or pressure. For this reason, we do not permit borrowers, co-guarantors, spouses, family members, friends, brokers, lenders or any other interested party to be present during the appointment.
For appointments conducted via video conference, we require clients to pan their camera around the room at the commencement of the appointment to confirm that no other person is present. This procedure helps ensure that the advice remains confidential, independent and free from external influence. Our priority is to ensure that you receive genuine independent legal advice so you can make an informed decision based solely on your own understanding of the transaction.
Our priority is ensuring that you clearly understand the legal effect of the documents before making your decision.
The solicitor providing the advice must be able to act solely in your interests and provide impartial legal advice.
Our role is to explain your legal position so you can make an informed decision. If, after receiving advice, you decide not to proceed with the transaction, that decision remains entirely yours.
Among other things, the Rule requires solicitors to comply with prescribed professional standards when providing advice and issuing Solicitor's Certificates.
The LIV publishes approved certificate forms and professional guidance commonly used by Victorian legal practitioners when providing independent legal advice in lending transactions.
They provide confidence that the transaction was entered into voluntarily and with a proper understanding of the legal consequences.
