Independent Legal Advice

ILA is professional advice from a solicitor who is entirely independent of all parties involved in a transaction or matter, ensuring the advice is unbiased.

You might need ILA when entering into agreements where there’s a potential conflict of interest, such as a personal guarantee, joint ventures, or when waiving certain legal rights.

ILA is provided where impartiality is critical, and no other party involved in the matter has an influence on the advice given.

Essentially, yes, but the solicitor should not have a conflict of interest and must be knowledgeable in the relevant area of law.

The Process of ILA:

1. The ILA solicitor receives the documentation requiring review from the client or directly from the other party’s solicitors.
2. They meet with the client to discuss the document’s contents and implications—this can happen through face-to-face meetings, video calls, or telephone conferences.
3. They take steps to ensure that the client fully understands the terms and any potential consequences of the agreement.
4. The solicitor may negotiate terms on behalf of the client if there are parts of the agreement that are unfair or unclear.
5. Once satisfied that the client understands and agrees to the terms, the solicitor will confirm that advice has been given, often by signing a certificate or providing a letter of advice.
6. They maintain communication and follow-up with the client as necessary, particularly if any adjustments or further clarifications are required

Key Aspects of ILA Solicitors:

• Impartiality: They provide advice that is entirely impartial, given independently of any other parties involved in the transaction.
• Confidentiality: The advice is confidential, bound by solicitor-client privilege, ensuring that the matters discussed are not disclosed to third parties without consent.
• Verification: ILA solicitors may also verify that the client is signing documents out of their own free will, without coercion, which is often necessary in transactions such as prenuptial agreements or mortgage signings.
• Conflict of Interest Check: They ensure that there are no conflicts of interest affecting the advice given to the client.

Lenders require ILA to ensure the guarantor fully understands the risks and implications of their commitment and cannot later claim they were unaware of the risks.

While not legally mandatory, it is often recommended to prevent future disputes by ensuring all parties are fully informed of the terms and consequences.

You can obtain ILA either way, though face-to-face is often preferred to ensure the solicitor can verify identity and assess understanding.

Costs can vary based on the complexity of the agreement and the solicitor’s rates. Always confirm fees upfront.

There are specific instances and transactions when ILA is not just beneficial but required, including but not limited to:

• Financial Agreements: For example, when a person is providing a personal guarantee for someone else’s loan or mortgage.
• Property Transactions: Such as during the transfer of equity where one party is giving up their share in a property.
• Family Law Matters: In the case of prenuptial agreements or postnuptial agreements where each party must understand their position clearly.
• Company Transactions: Instances where directors may have a personal interest in a contract entered into by their company.

It can take from a few days to a couple of weeks, depending on the complexity of the advice and how quickly you provide the necessary documents.

No, ILA helps you understand the legal implications and risks of your decision—it does not guarantee outcomes.

Yes, if there’s a conflict of interest, lack of expertise in a specific area, or if the client’s expectations are unrealistic or unethical.

Foreshadowing issues could occur, such as a later claim that you did not understand the agreement, potentially leading to the agreement being unenforceable against you.

ILA typically focuses on explaining the legal implications, not necessarily the commercial fairness of an agreement.

You’ll need to provide the agreement or contract in question, proof of identity, and any other relevant documents related to the matter.

Yes, communications between a solicitor and a client during ILA are confidential and protected by solicitor-client privilege.