It's very common for people to loan out money to family or friends. Although they never really take consideration of the security of these loans.
If you don't take security and your borrower goes bankrupt, you may find that your borrower has many other creditors with whom you have to share their assets, resulting in the loss of family money.
This tragic situation can be avoided or minimised by putting in place relatively simple legal documentation up front and registering it in the appropriate place. It is in the interests of all parties to inter-family loans to make sure this happens.
If you have any queries about this or any other aspect of property law or conveyancing then please contact us on 07 5443 9988 or [email protected].
Argon Law is a Sunshine Coast law firm based in Maroochydore. We are commercial lawyers and property lawyers and are eager to assist you in any way we can.
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