Loan Agreement
Personal Loan Agreement
Perth Commercial & Corporate Lawyers
Are you looking to borrow or lend money privately whether with friends, a family member or a business associate? West Perth Legal’s commercial lawyers can assist you with all legal aspects of personal lending and borrowing. We act for both borrowers and lenders and are experienced with both secured and unsecured loans.
Our services cover:
- Personal Loan Agreement
- Caveat, mortgage, second mortgage, and personal property security registration
- Guarantee and Indemnity Deed
- Multi lender loans
- Acknowledgement of Debt
- Deed of Release for a Loan
West Perth Legal Advantage
Experienced Commercial Lawyers
Professionally Drafted Agreements
Price Certainty (Fixed Fees Where Possible)
Responsive Lawyers
Loan Agreement
A loan agreement is a legal contract which sets out the terms to which a lender lends to a borrower. Even if you are lending privately to friends or family, it is always a good idea to document your loan via a legal loan agreement. This ensures that the parties are clear on the terms of the loan and help to avoid it being classified as a ‘gift’.
West Perth Legal provides professionally drafted loan agreements to suit your situation and budget. Our contract drafting services include:
- Legal advice on the type of loan agreement suitable and how to increase the chances of loan repayment
- Loan agreement between family members or friends
- Loan agreement for purchasing a house (including settlement, if required)
- Loan agreement with mortgage or second mortgage
- Loan agreement with caveat
- Loan agreement with security agreements
The importance of having a legally drafted loan agreement
A loan agreement would help indicate that the fund lend was intended to be a ‘loan’, as opposed to a ‘gift’. This is particularly important for enforceability purposes. Having a legally enforceable loan agreement could potentially save you from having to write-off your debt or spend legal fees to recover the loan amount.
Lenders regularly have problems recovering the loan amount due to the absence of or a poorly drafted loan agreement, where disputes arise on the amount of the loan, repayment terms etc. In a divorce, funds that have been lent to the divorcing couple may be treated as a gift if there is no clear documentation indicating otherwise.
Important issues covered by a loan agreement
A loan agreement would typically cover important issues including:
- Loan amount
- Length of the loan
- Purpose of the loan
- Repayment schedule, including any fees
- Interest rate
- Security that can be registered against the loan
- Consequences of default
Contact us
A professionally drafted loan agreement by an experienced commercial lawyer will increase the chances of loan recovery. Our lawyers will also help you to take steps to secure your loan to maximise your legal protection.
Personal Loan Legal Services
It is important that the agreement to lend/borrow is clearly set out in a written contract between the lender and the borrower and is properly executed. The loan agreement should include key information on the loan such as the loan amount, term of the loan, purpose of the loan, interest rate, and repayment schedule.
Our lawyers draft robust and tailored loan agreements that are suitable for your situation and best protect your legal interest.
A loan with security is where the borrower pledges assets as collateral for the loan. The collateral can be real estate, equipment, stocks, or other valuable assets. Some security permits the lender to seize and sell the collateral to recover the owed amount. Some other methods prevent the transfer of ownership in property without the lender’s consent, and some requires a third party to guarantee a loan. These arrangements seek to reduce the lender's risk and can potentially allow the borrower to secure better loan terms.
Our lawyers assist with preparing and registering a mortgage, caveat, PPSR or drafting personal guarantees to help secure a loan.
If the borrower defaults on the loan such as missing a repayment or repaying late, the parties should look to the loan agreement to resolve such issues. Typically, the loan agreement will include remedies such as interest on late repayment, it will address when default notices should be issued, or when rights over the security over an asset can be exercised. An indemnity provision is also helpful where the borrower agrees to indemnify the lender for costs associated with default by the borrower.
Our lawyers assist with reviewing your loan agreement and providing legal advice on loan default, drafting default notices and helping the lender exercise rights over secured assets in the event of default.
West Perth Legal provides targeted legal advice to lenders and borrowers looking to lend/borrow or have legal issues for an existing loan. We provide consultation with an experienced lawyer to address legal questions you have, such as how to structure a loan, how to secure a loan, legal recourse when there is a default, or how to exit a loan.
In situations where the lender releases the borrower from a loan, the parties may document this through a Deed of Release for a Loan. This is a legal document that formally acknowledges the repayment and discharge of a loan. The Deed of Release serves as proof that the debt has been satisfied, protecting the borrower from future claims and providing clear documentation of the loan's closure.
Read more
In cases where the parties wish to confirm a debt is owed by the borrower, a Deed of Acknowledgement of Debt may be appropriate. This is a formal document in which a borrower acknowledges that they owe a specific amount of money to a lender. It serves as a written confirmation of the borrower's obligation to repay the lender, providing a clear record of the debt. It can be drafted in conjunction with a payment plan, and registration of security over the debt.
Frequently Asked Questions
Commercial & Corporate Lawyers
We have helped hundreds of clients with their commercial legal needs. See our Commercial Law and Corporate Law pages for more information.
