Question 1

Is this document a legal document?

Accepted Answer

All master documents have been signed off by Abbott & Mourly lawyers. Tony Anamourlis of Abbott & Mourly advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LightYear Docs platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LightYear Docs platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by Abbott & Mourly.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Question 2

Is the document easy to read?

Accepted Answer

All LightYear Docs products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lightyeardocs.com.au.

Question 3

Who can be the Borrower?

Accepted Answer

The LightYear Docs SMSF Loan Agreement enables the Lender and the Borrower to set the appropriate interest rate. However, the Loan terms and conditions should be arm’s length.

Question 4

Is a mortgage deed necessary?

Accepted Answer

It is standard practice by banks and other lending institutions to require a mortgage deed between the borrower and lender, when entering into a property loan agreement.

For those transactions between non-bank parties such as a SMSF lending to a third party, it is vital that standard lending practice be applied, and a mortgage deed be put in place and more importantly registered.

Question 5

Is the Mortgage Deed legal?

Accepted Answer

It is a legal document that has been prepared by our lawyers Abbott & Mourly which operates to define the roles of each party, the employer or employee. Without this agreement any failure by the borrower to repay is unsecured.

Question 6

How many should I use?

Accepted Answer

A mortgage deed is needed for each property the lender is seeking to secure.

Question 7

Is this document reviewed regularly?

Accepted Answer

All LightYear Docs documents form part of the LightYear Docs internal document review cycle. All documents are scheduled to be reviewed at least annually or when required to do so, due to changes in legislation. The LightYear Docs review cycle ensures all of our documents remain current and accurate.