Hi,
I'm arranging a loan with a friend secured by a 1st mortgage and with personal guarantees from both myself and my wife. I am trying to keep the relationship properly business like with a standard mortgage agreement and Auckland District Law Society memorandum of mortgage. The friend's solicitor is insisting that there is no need for her to sign anything. If this is the case then I don't understand how I can be sure I can enforce the loan agreement terms regards early repayment options and facilitating subdivision etc. Is this correct that lenders do not normally sign loan agreements? Sounds bizarre to me. Or am I not understanding the difference between the loan agreement and the registered mortgage?
Thanks in advance for helping me understand.
I'm arranging a loan with a friend secured by a 1st mortgage and with personal guarantees from both myself and my wife. I am trying to keep the relationship properly business like with a standard mortgage agreement and Auckland District Law Society memorandum of mortgage. The friend's solicitor is insisting that there is no need for her to sign anything. If this is the case then I don't understand how I can be sure I can enforce the loan agreement terms regards early repayment options and facilitating subdivision etc. Is this correct that lenders do not normally sign loan agreements? Sounds bizarre to me. Or am I not understanding the difference between the loan agreement and the registered mortgage?
Thanks in advance for helping me understand.
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