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loan from aunt and contract

  • 14-08-2015 11:05am
    #1
    CodeMonkey
    Registered Users, Registered Users 2 Posts: 1,103 ✭✭✭


    I am getting a substantial loan from an aunt for purchase of a house. We want to draw up a legally binding contract regarding what the loan is for and repayment details. Is it worth spending the money for a solicitor to draw up a contract or can I just download a private loan contract template from the web? Just wondering what are people's experience with the latter.


Comments

  • #2
    CodeMonkey
    Registered Users, Registered Users 2 Posts: 1,103 ✭✭✭CodeMonkey


    Ooops, typo in title.


  • #3
    nuac
    Registered Users, Registered Users 2 Posts: 6,769 ✭✭✭nuac


    Get proper legal advice from a solicitor. Your aunt should also get independent legal advice.

    If the deal goes wrong, it could resonate down thru' generations.

    Yes there are all sorts of legal precedents on the 'net. You can also buy some sample wills on the internet and from some stationers. Practising lawyers love them as they are a fertile source of litigation


  • #4
    seamus
    Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    Aside from anything else, having a solicitor means you have a 3rd party witness to the specifics, which can avoid any arguments about the agreement later on.

    There may also be tax implications for both of you depending on the nature of the loan.

    Definitely wouldn't advise going it alone.


  • #5
    CodeMonkey
    Registered Users, Registered Users 2 Posts: 1,103 ✭✭✭CodeMonkey


    Cools, thanks for advice.


  • #6
    Peregrinus
    Registered Users, Registered Users 2 Posts: 26,989 ✭✭✭✭Peregrinus


    Yup. If this goes wrong it will go very, very badly wrong. The fact that you and your aunt are related is not a simplifying factor, but a complicating one.

    You need a lawyer. So does she. And you both need to not have the same lawyer. It's not so much worth spending the money on legal advice as absolutely essential to do so.

    Even if you could find some kind of precedent loan agreement for free on the web, it will be for a bog-standard arm's-length transaction, not for a transaction between connected parties. Do not touch it with a barge-pole.


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