The short answer is that you ensure that the parents get proper independent legal advice before they go guarantor. We routinely give this advice to parents considering giving a guarantee for their children’s home or business loan and ensure that they do so with open eyes and a clear understanding of the risks involved.
While your bank may not *require* you to get independent advice, we can do so whether it’s required or not. For peace of mind, feel free to call us on 08 8278 1779
We now have a set of FAQ’s on our website here: https://www.kruselegal.com.au/certificates/solicitor-guarantee-certificate/#FAQ