Guarantors
Understand the Risks Before You Sign
Being asked to act as a guarantor, especially by a family member or close friend, can feel like a generous and supportive decision. But it’s also a serious legal commitment that can put your own finances at risk if things don’t go to plan.
At Kruse Legal, we offer clear, practical legal advice for guarantors and guarantee agreements. Based in Blackwood in the Adelaide Hills, we’ve been helping local individuals and families make informed financial decisions for over 11 years.
What Does It Mean to Be a Guarantor?
When you sign as a guarantor, you’re promising to cover someone else’s loan or financial obligation if they can’t meet the repayments. Typically, this is for a home loan.
While the intention is often to help a loved one, the financial and legal implications for you can be significant.
Why Legal Advice Matters
Before signing a guarantee, it’s essential to:
✔ Understand exactly what you’re agreeing to
✔ Know your obligations and liabilities
✔ Be aware of the risks to your assets and credit
✔ Explore any alternative options
We can review the loan documents, explain your rights and responsibilities in plain English, and ensure you’re not being pressured into an agreement you don’t fully understand.
How We Can Help
We offer friendly, thorough advice on:
- Guarantee and indemnity agreements
- Home loan and business loan guarantees
- Risks associated with acting as guarantor
- Negotiating or limiting your liability
- Advice for elderly or vulnerable guarantors
- Independent legal advice certificates (often required by banks)
Supporting You With Clarity and Care
At Kruse Legal, we take the time to listen, explain things clearly, and help you feel confident about your decision. You’ll deal directly with an experienced solicitor, not a call centre or junior staff member.
We’re proud to support families across Blackwood and the Adelaide Hills, offering down-to-earth legal advice you can trust.
Considering becoming a guarantor?
Speak with us before you sign. Call (08) 8278 1779 or get in touch to book a confidential chat with one of our solicitors.
Guarantors - Frequently Asked Questions
Yes. Most banks and lenders require you to obtain independent legal advice before accepting your guarantee. More importantly, you need to fully understand your legal and financial responsibilities before committing.
If the borrower defaults, you may be legally required to repay the loan, including interest, fees, and recovery costs. This could impact your credit rating, put your home or assets at risk, and affect your ability to borrow in the future.
Unfortunately, yes. If you’re concerned about undue influence, pressure, or lack of understanding, we can help assess whether the agreement was made fairly and advise you on any steps to challenge or withdraw it.