Whether you are lending to a family member, securing a business loan against property, or borrowing outside the traditional banking system, private lending arrangements carry real legal risk. We make sure yours are structured correctly — so your relationships stay intact and your interests stay protected.
Private lending occurs when money is lent outside of a traditional financial institution — between individuals, through a self-managed super fund, or via informal family arrangements. These transactions are more common than most people realise, and when handled without proper legal documentation, they can unravel quickly.
At Ellison-Whyte Law, we act for both lenders and borrowers in private lending matters. We bring the same rigour to a family loan as we would to any commercial transaction — because the stakes are just as real.
Individuals lending to family or friends
Lending money to someone you love should feel generous, not risky. We make sure your loan is properly documented, your security is registered, and both parties understand their obligations — protecting the relationship as much as the funds.
Self-managed super fund (SMSF) lenders
SMSFs can act as private lenders in certain circumstances, but the rules are strict and the consequences of getting it wrong are serious. We work closely with your accountant or financial adviser to ensure your SMSF lending arrangement is legally sound and compliant.
Small business owners using property as security
When business funding is secured against real property, the documentation has to be precise. We draft and register the necessary instruments to protect your position — whether you are the one lending or the one borrowing.
Clients borrowing privately outside a bank
Private borrowing can be a flexible and efficient alternative to traditional finance. We advise borrowers on the terms of any private loan, ensure you understand your obligations, and make certain you are not exposed to terms you haven't fully considered.
Loan Agreement Drafting
A handshake is not a loan agreement. We draft clear, enforceable loan agreements that set out the amount, interest rate, repayment terms, and what happens if things don't go to plan. Both parties leave with certainty.
Private Mortgage Registration & Lodgement
Where a loan is secured against real property, we prepare and register the mortgage with Land Use Victoria — giving the lender a formal, registered security interest over the asset. This is the critical step that transforms a private arrangement into a legally protected one.
Second Mortgages
If a property already carries a first mortgage, a second mortgage can still be registered to secure a private loan — but the priority of interests, and the risks involved, must be carefully understood by all parties. We advise on second mortgage arrangements and handle the lodgement process.
Caveat Lodgement
Where a registered mortgage is not possible or appropriate, lodging a caveat over a property can protect a lender's interest and prevent the property from being dealt with without their knowledge. We advise on whether a caveat is the right instrument for your circumstances and handle the preparation and lodgement.
Guarantor Advice & Independent Legal Certificates
If you are being asked to guarantee someone else's loan — whether for a family member, a business partner, or a private lender — you need independent legal advice before you sign. We review the loan documents with you, explain what you are agreeing to, and provide a Certificate of Independent Legal Advice where required.
It is a question we hear often: do we really need to document this? We trust each other.
The answer is always yes — and not because we expect things to go wrong, but because proper documentation is what allows things to go right. A well-drafted loan agreement protects both parties, removes ambiguity, and means that if circumstances change — a relationship breaks down, a business struggles, a borrower passes away — everyone knows exactly where they stand.
The cost of getting this right is small. The cost of not doing so can be significant.
We handle private lending matters with discretion and efficiency. Most straightforward loan and mortgage arrangements are completed on a fixed fee basis, so you will know your costs from the outset.
Our process is simple: you brief us on the arrangement, we advise on the best structure, prepare the documents, attend on the relevant parties to sign, and register or lodge the necessary instruments. We can work with you in person or entirely online.
GUARANTOR & MORTGAGE ADVICE
Certificate of Independent Legal Advice
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PRIVATE LENDING
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