Personal Guarantees
Personal Guarantee Law Firm For Fast Affordable Service
PROTECT YOURSELF: Understand what you are signing as personal guarantee!
A personal guarantee in Alberta is a personal promise to make good on a loan or other obligation given by another person or a corporate entity. While some people think that a personal grantee is a rubber stamp for getting a loan, it can have sever consequences. This is why the Alberta government requires a Guarantees Acknowledgement certificate. The lawyers at Kahane Law Office in both of our Calgary and Edmonton , Alberta offices help with personal guarantees. Same day and next day service is often available.
Why You Need A Lawyer For A Guarantee?
A lawyer is needed for a guarantee for one reason but one based on public policy. If you are personally guaranteeing something, then you will require a lawyer because it is the law in Alberta. The Guarantees Acknowledgment Act creates a legal obligation for a lawyer to sign the personal guarantee acknowledgement certificate with the person giving the personal guarantee. If not the personal guarantee is not effective. This is the law to protect people. By personally guaranteeing something, a person is losing the protection and/or creating a personal obligation that can have sever personal consequences. Only a lawyer can give legal advice to a person so that they are aware of the legal consequences of signing.
What Is A Guarantees Acknowledgement Certificate?
The Guarantees Acknowledgement Certificate is a form that is signed by a layer stating that they have examined a person giving a guarantee personally. It states that the lawyer is satisfied by that examination that the person understands the documents that they are signing. The Guarantees Acknowledgement Certificate is then signed by the person giving the guarantee. Without this document, the guarantee may not be effective. This is why most lenders will require this form as a part of their security.
Types Of Personal Guarantees
Guaranteeing the obligations of another occurs often in today’s society. Lenders wish to secure their loans as best they can. this often includes ensuring another person or company is on the hook for a loan or other obligation. The situations in which these occur vary. For example, the following include situations where people need these services:
- Small business loans;
- Unsecured line of credits;
- Corporate loans;
- Student loans;
- Car loans; and lastly
- Rental or lease agreements.
Things You Must Bring For Your Appointment
When you come for your appointment to sign off on your personal guarantee, you will need to bring three things with you. Make sure you bring:
- 2 pieces of ID: one must include government issued ID with a photo, second may also include a credit card, SIN, Heath card;
- The loan agreement that you plan to guarantee; and lastly
- The actual personal guarantee with Acknowledgment.
Lenders most often fail to give the borrower or guarantor the loan agreement documents. This makes it impossible to complete this process.
Finding Personal Guarantee Acknowledgment Certificate Lawyers In Edmonton & Calgary, Alberta
Finally, make sure you understand exactly what you are signing. Agreeing to cover someone else’s loan often includes significant liability. Often, you lose the ability to control how much or if you must pay. The lawyers at Kahane Law Office can help when you need to sign a personal guarantee. CONNECT NOW. Please feel free to reach us toll-free at 1-877-225-8817 (or 403-225-8810 locally in Calgary and 780-571-8463 in Edmonton, Alberta), or email us directly here.