Solicitor’s Certificate Adelaide: What You Need to Know | PA Law

Solicitor’s Certificate Adelaide: learn why your bank may require independent legal advice, what the solicitor explains and what to expect from your appointment.

What Is a Solicitor’s Certificate and Why Does My Bank Require One?

If your bank, lender or mortgage broker has told you that you need to obtain a Solicitor’s Certificate or independent legal advice before your loan can proceed, you may be wondering what is involved and why it is necessary.

It is common for people to assume that obtaining a Solicitor’s Certificate simply involves visiting a lawyer, signing the loan documents and having the lawyer witness their signature.

In reality, the process can involve considerably more.

A Solicitor’s Certificate is generally associated with the provision of independent legal advice about a loan, guarantee, mortgage or other security document. The purpose of the appointment is to ensure that you have had an opportunity to understand the legal nature and effect of the documents and the obligations you are proposing to undertake.

At PA Law Pty Ltd, we provide independent legal advice and Solicitor’s Certificates for suitable lending and finance transactions in Adelaide, Gawler and throughout South Australia.

What Is a Solicitor’s Certificate?

A Solicitor’s Certificate is a document that a lender may require a solicitor to complete after providing independent legal advice to a borrower, guarantor or person providing security for a loan.

The terminology used by banks and lenders varies.

You may see documents described as a:

Although the names differ, the lender is generally seeking confirmation from an independent solicitor that certain legal advice has been provided.

Why Does My Bank Require a Solicitor’s Certificate?

Loan and security documents can create significant legal obligations.

A lender may therefore require independent legal advice before accepting particular loan, guarantee or security documents.

This is especially common where a person is:

The requirement is ultimately determined by the lender and the particular transaction.

Why Isn’t It Just Witnessing a Signature?

This is one of the most common misconceptions about Solicitor’s Certificates.

A solicitor who is asked to provide independent legal advice may need to review a substantial package of loan and security documents before meeting with you.

Depending on the transaction, those documents may include:

The solicitor must understand the relevant documents before they can properly advise you about their legal effect.

The appointment is therefore not simply a document-signing or witnessing service.

What Does the Solicitor Explain?

The precise advice will depend on the transaction and the documents involved.

Generally, the solicitor will discuss the legal nature and effect of the relevant documents and the obligations you are proposing to assume.

For example, where you are providing a guarantee, the advice may address the nature of the guarantee, circumstances in which the lender may seek to enforce its rights and the potential consequences of providing security.

You should also have an opportunity to ask questions about matters you do not understand.

Independent legal advice is intended to help you understand the legal consequences of the transaction. It is not a recommendation that you should enter into the transaction.

Your solicitor also does not replace your accountant or financial adviser. Depending on your circumstances, you may need separate financial, taxation or accounting advice.

Solicitor’s Certificates for Guarantors

Solicitor’s Certificates are particularly common where a person agrees to guarantee somebody else’s borrowing.

A common example is a parent providing a guarantee or security to assist an adult child to purchase a home.

Guarantees can also arise in business transactions, including where directors or shareholders provide personal guarantees for company borrowing.

A guarantee can create substantial obligations.

You should therefore understand the documents and obtain the required independent advice before deciding whether to proceed.

Why Do I Need to See a Different Solicitor?

In some transactions, the lender requires the person receiving the advice to obtain advice from an independent solicitor.

This is particularly important where different parties to the transaction may have different interests.

The solicitor providing the certificate must be able to advise you independently and in accordance with the lender’s requirements and the solicitor’s professional obligations.

What Should I Send the Solicitor?

If your lender or mortgage broker tells you that you need a Solicitor’s Certificate, obtain the complete document package rather than only the certificate or signature pages.

At PA Law, we generally ask that you provide:

  1. the complete loan documentation;
  2. mortgage and security documents;
  3. any Guarantee and Indemnity;
  4. the lender’s Solicitor’s Certificate or Certificate of Independent Legal Advice;
  5. any instructions issued by the lender to the advising solicitor;
  6. details of the lender and borrower;
  7. the proposed settlement or finance deadline; and
  8. relevant lender or mortgage broker contact details.

We will advise you separately about identification and any additional requirements applicable to your matter.

Why Does PA Law Require the Documents 48 Hours Before the Appointment?

At PA Law Pty Ltd, complete loan and security documents must generally be provided at least 48 hours before your appointment.

There is an important reason for this requirement.

We want sufficient time to review the documentation before meeting with you so that the appointment can focus on providing meaningful legal advice rather than attempting to read a substantial finance package while you wait.

Advance receipt of the documents also assists us in identifying the nature of the transaction, the documents requiring advice and any particular lender requirements before the appointment.

If your settlement or finance deadline is approaching, we recommend contacting us as early as possible.

Can I Sign the Documents Before Seeing the Solicitor?

Unless your lender or solicitor has specifically instructed otherwise, you should generally avoid signing documents that require independent legal advice before your appointment.

If you are unsure, contact the solicitor before signing.

How Long Does a Solicitor’s Certificate Take?

The time required depends upon the complexity and volume of the documents, the lender’s requirements and the nature of the transaction.

This is another reason why it is important not to leave the process until the day before settlement.

If you have been told that a Solicitor’s Certificate is required, obtain the documents from your lender or broker and contact a solicitor promptly.

How Much Does a Solicitor’s Certificate Cost?

PA Law offers a fixed-fee service for suitable Solicitor’s Certificate and independent legal advice matters.

The applicable fee will depend upon the nature and complexity of the transaction and the documentation requiring review.

Once sufficient information and documentation have been provided, we can confirm whether we can assist and the applicable fixed fee.

Do I Have to Proceed After Receiving Independent Legal Advice?

Receiving independent legal advice does not mean that you are required to proceed with the transaction.

The purpose of the advice is to help you understand the legal consequences of the documents so that you can make your own decision.

You should not feel pressured to sign a guarantee, mortgage, loan or other security document merely because a settlement date has been arranged or another party expects you to proceed.

Need a Solicitor’s Certificate in Adelaide or South Australia?

If your bank, lender or mortgage broker has asked you to obtain a Solicitor’s Certificate, Guarantor Certificate or Certificate of Independent Legal Advice, PA Law may be able to assist.

Manal Amro, Principal Lawyer of PA Law Pty Ltd, provides independent legal advice for suitable borrower, guarantor and mortgagor matters.

Complete documentation should be provided at least 48 hours before the proposed appointment to allow sufficient time for review.

For further information about our process, document requirements and Solicitor’s Certificate service, visit:

Independent Solicitor’s Certificates Adelaide – PA Law

Alternatively, contact PA Law Pty Ltd ON 0431 614 696 to discuss your requirements and obtain a fixed-fee quote.

This article provides general information only and does not constitute legal advice. The requirements applicable to a Solicitor’s Certificate depend upon the lender, the documents and the circumstances of the particular transaction. You should obtain legal advice relevant to your individual circumstances.