About Me
I graduated with a Bachelor of Arts and a Bachelor of Laws from the University of Adelaide in 2003. After completing a Graduate Diploma in Legal Practice, I was admitted as a Legal Practitioner in the Supreme Court of South Australia in 2005.
I established my own legal practice in 2010 after working for both large national law firms and smaller family-owned legal practices. I have experience in several practice areas, however I chose to specialise in Guarantor and Independent Legal Advice due to the need within the financial services sector. I pride myself on providing a high level of personalised service to my clients in a comprehensive but simplified manner.
My professional fees are from $440.00 (Inc. GST) per appointment.
I currently offer appointments in four locations: Adelaide CBD, Maylands, Port Adelaide and Hallett Cove.
I also offer a Mobile Service to Brokers’ Offices if a private meeting room and a photocopier and scanner can be utilised.
Teams, Skype and Zoom appointments may be available for some clients, depending on the level of complexity and number of documents involved.
I am very approachable and invite you to contact me on 0423 033 634 or maxine@mmlawyer.com.au with any enquiries.
MY SERVICE
legal practice areas
Independent Legal Advice and Certificates
Borrower Legal Advice
Family Equity or Pledge Loans
Company and Trust Loans
Self-Managed Super Fund (SMSF) Loans
Reverse Mortgage or Home Equity Release Loans
Independent Legal Advice and Certificates
If you act as guarantor for a loan, the lender or bank providing the finance may require you to undertake independent legal advice. This is important because being a Guarantor carries risks. If the borrower falls behind or defaults on the loan, the lender or bank will demand money from you and therefore you may be at risk of losing your property or other valuable assets.
Some borrowers may also be required to undertake independent legal advice. Many lenders and banks require specific borrowers to undertake independent legal advice if they are considered to be vulnerable to ensure they have full understanding of the documents that are in the loan pack.
Both guarantor and borrower independent legal advice is now extremely common and is the policy of most lenders and banks since the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry in 2017.
https://www.royalcommission.gov.au/banking
Independent legal advice can be provided once you have been issued a guarantor or borrower loan pack by the lender or bank. This loan pack will contain documents that need to be explained to you before you sign them.
A legal advice certificate is also issued by the lender or bank with the document pack and is to be completed once legal advice has been undertaken and understood. This document is known by several different names such as Solicitors or Barrister Certificate, Annexure A, Legal Practitioners Certificate or Acknowledgement of Legal Advice. This document confirms that you have been advised of the effect and implications of the guarantee and other documents that you give the lender or bank. It also provides assurance to the lender or bank that you understand the risks and are making a free and informed decision. Once all documents are completed by the lawyer, the executed document pack can be returned to the lender or bank and settlement of the loan can occur.
Borrower Legal Advice
You may be asked to obtain independent legal advice by a lender or bank as a borrower. This is likely to be because you are a specific type of borrower who is considered vulnerable and the lender or bank requires you to obtain the advice in accordance with their policy. You may be a borrower who is self-employed, approaching retirement age, have a limited income, provided limited financials (known as a low doc loan) to support the application or do not have English as your primary language. If you are a co-borrower on a loan and not on the title of a property, you may be required to undertake independent legal advice.
Family Equity or Pledge Loans
A family equity or pledge loan is where a borrower uses a portion of the guarantor’s home equity as the deposit to their own property purchase. Relatives such as parents, grandparents, siblings and step-parents who have sufficient house equity may also be eligible to act as guarantors. The guarantor or relative is generally liable for the deposit or a limited amount which is outlined on the guarantee. If the borrower fails to pay or falls behind on the loan and they default. Once a default is registered by the lender or bank the guarantor must pay the amount nominated on the guarantee at the time the debt falls due. Independent Legal Advice must be obtained by guarantors for family equity or pledge loans so that the full risk and implications can be explained to them before signing, including potential loss of the guarantor’s security property.
Often lenders mortgage insurance can be avoided by borrowers if their guarantors offer approximately twenty per cent of the total loan amount as a guarantee.
Major Banks such as Westpac, Bank SA, St George and ANZ offer limited family equity loans. Generally, there is a first or second mortgage in place and the guarantor does not go onto the borrower’s title. If the guarantor and borrower are using two separate lenders a deed of priority must be agreed to and executed by all parties and the lenders involved. This ensures all lenders and banks have their portion of the property protected in the event of a default.
Company and Trust Loans
When a Director of a Company or a Trustee of a Trust undertakes a loan, lenders and banks often require that the Director and/or Trustee undertake independent legal advice. This is to be aware of the level of risk being undertaken, both as Directors and Trustees as well as personally.
Independent legal advice may also include a non-Director or non-Trustee who is still taking some financial risk in the loan structure. This is known as a vulnerable third-party guarantor who is often a spouse of the Director and Trustee. The spouse is considered vulnerable because they still have financial risk without full legal decision-making ability.
Self-Managed Super Fund (SMSF) Loans
A Self-Managed Super Fund or SMSF, is essentially a Company and Trust structure with additional requirements of the Superannuation Industry (Supervision) Act 1993 or SIS ACT
When a SMSF undertakes a loan to purchase property, a Bare Trust is created to undertake the loan because the SMSF cannot undertake the loan itself. Lenders and banks require SMSF Directors, Trustees and borrowers to undertake independent legal advice as part of the loan application. The legal practitioner engaged will also have to act as a witness for a considerable number of ancillary documents in addition to a normal guarantor loan pack such as guarantee and indemnity and mortgages. This would include Verification of Identity (VOI) of the Directors, Trustees and individually.
Second tier and specialist lenders such as Liberty, La Trobe, Macquarie Bank, Resimac, First Mac and Granite currently offer SMSF loans. The major lenders stopped offering SMSF loans to new borrowers following the Royal Commission.
Reverse Mortgage or Home Equity Release Loans
A Reverse Mortgage or Home Equity Release is a loan specifically for retirees or pensioners who may have a low income but equity within a property. A portion of the equity can be drawn down on a property for a worthwhile cause such as supporting living costs or home improvements to allow a person to remain in their home longer. A reverse mortgage is also known as an equity release loan. A mortgage is registered against the borrower’s property and the borrowed funds are placed into a borrower’s bank account. Generally, interest payments are not required on reverse mortgages and the debt is paid when the borrower sells, perhaps to downsize or move into aged care. Residual debt from a reverse mortgage could also be paid out to a lender by an executor of an estate and remaining funds then being distributed to beneficiaries. However, the effect of a borrower not making any repayments on a loan has the effect of compounding the interest. Therefore, Reverse Mortgage debt can grow significantly over time and can limit and prevent future housing and care options for the borrower. Particularly if a Reverse Mortgage is taken out early in retirement or if initial draw downs are high, the rate of growth of the loan accelerates in future years. Given the risk of losing a significant amount of property equity due to compounding interest, most Reverse Mortgage lenders or banks generally require applicants to undertake independent legal advice.
Specialist lenders such as Heartland, Household Capital and C and G Mutual all offer Reverse Mortgages.
TESTIMONIAL
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Get In Touch
I currently offer appointments in four locations: Adelaide CBD, Maylands, Port Adelaide and Hallett Cove.
- 0423 033 634
- maxine@mmlawyer.com.au
CONTACT INFO
- 0423 033 634
- maxine@mmlawyer.com.au
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