Turning 50 years of age

Dear friends and readers

Yes, I have turned 50 years old this month!!!

What does it feel to reach that milestone?

Well, let's count my blessings. I have a beautiful wife who loves and tolerates me.

She is my soul mate and I trust her expressly with my children, my business, my love etc etc etc.

I have 2 beautiful boys who keep me occupied in golf and badminton. So, I feel young while trying to keep up with them. At 13 and 15 next May, they are both trying out for the WA Under 19 years Badminton team. I have taken to training with them and pushing my 50 yr old body. I wonder what they both think of when they see their old man training next to them.

I have my mother in law living with me. She  suffers from short term memory loss and thinks every day is the eve of the Chinese New year. What a blessing to be stuck in that time warp. She comes with a 17 year old dog that keeps me busy cleaning up after it.


I have a great business with great employees that I enjoy mentoring.

I have a great group of close friends that meet every week for badminton and gin rummy.

So life has been good. Recently I have been advising public company shareholders on board takeovers. It has been a great experience and I believe there is so much more public company work that will keep me occupied. Who knows, I might be invited to sit as a director in a board for a public company.

Where do I go from here?


I am looking at expanding Tan and Tan Lawyers. The new premises is getting a bit tight already. My business doctor Jeff Miles wants me to expand and get more office space.

I am looking at joining office space with an accountant. I love changes and creating opportunities. I love challenges. The prospective location is Morley. I will keep you updated.

Oh yes, what about my golf.  It sucks and it shines. I can break 90 and just break 100 in the same week.

My son Jaz has been keeping me on my toes. He has been admitted to Royal Perth Golf Club while my favorite golfing mates, Henry, Frank and I continue playing at public courses.

On the eve of my birthday, I arrived home with my wife after buying roast duck for dinner which was to be enjoyed by the family.

When I walked through the garage door, I received a surprise birthday party with all my close friends. It was such a great surprise and I nearly had a heart attack.

Annie had done such a great job hiding the surprise from me. Dinner was enjoyed with all my close friends including Auntie Ee and Mrs Tay. The Jongs, Bitaos, Lees; Ongs,  Buis and Janet were all great company and I thank them for spending their time to spend my birthday with me. That's what good friends are for.

The next day, I brought the family out for a dinner at Mosman Bay Restaurant. It was a great location and the food was great except that these damned noveau cuisine do not really fill your stomach.

Kids were talking about having soup once we got home. These are growing boys.

There is nothing better than having a family dinner. I have made it a rule that all dinners are shared at the dining table instead of occasionally sitting in front of the TV to have our dinner. That rule has proven a great rule as it allows me to catch up with the boys.

Annie being kissed by a 50 year old man

Family photo outside Mosman Bay Restaurant

Family with Popo

Tyz and Jaz, the 2 princes

The next day proved another surprise as the staff of my office threw me another surprise party. It's great to work with all of them. We have all gone through some tough times but many good times together. Their presents were all golf related. Is it not easy to shop for me?

The staff of Tan and Tan throwing a 50s party for their boss.

One of the presents the staff gave to me for Christmas last year was a voucher for a portrait sitting with Viva Photography. As a celebration of my 50th birthday, my wife organised for the portrait sitting. It was fun and the family totally enjoyed it.

Here are the photos.

I just wonder why I was never asked to pose solo???? It was my birthday after all but the photographer only wanted solo photos of the boys and my wife!!!! I felt like I was a prop or supporting cast.

Until I blog again, life is what you make of it. In the words of Forrest Gump, life is a box of chocolate.

New website for probate and estate planning matters

Dear Readers,

It has been a while since my last blog.

Val, a lawyer from my office has been working hard with me to create a new website focusing on probate and estate planning matters.

Yes it is true, there is nothing more definite than tax and death.

Well, the reason for estate planning is to ensure your wealth is distributed according to your wishes and with minimal tax. Have a look at www.affordablelaw.com.au

It is a website totally addressing estate planning matters.

Feel free to browse the site before making an appointment to see one of our lawyers to discuss your estate planning requirements.

Celebrating Chinese New Year

We are now in the year of the Rabbit according to the Chinese Lunar Calendar. Was the year of the Tiger a good year? That was the year Tan and Tan Lawyers moved to their new premises at Terrace Rd. The move has seen Tan and Tan Lawyers improve on their quality of service. We were granted a Quality Assurance Practice Standard accreditation in the year of the Tiger. Our new office premises are a dream to work from. We have river and park views. I enjoy nothing more than sitting outside the verandah and having a coffee. So all in all the year of the Tiger was quite good. The year of the Rabbit promises to be just as interesting. I was supposed to set up a branch office in the north. However I am advised by my feng shui master that this is the year to conserve energy and funds. However my business doctor/mentor tells me I have to expand. Such is the paradox. Any way, here are some photos of the lion dances at the office to bring in the new year. This year I have decided to focus on providing my legal service to public listed companies. I now act as legal adviser to a public listed comnpany based in Perth. Suffice to say that it has been an interesting experience. On behalf of the current chairman who was the majority shareholder of the company, we managed to get control of the board. The chairman has been inspirational in how he perceives business and legal issues. Suffice to say I believe I am a good lawyer but not much of a businessman. I supposed my legal training prevents me from taking business risks. The chairman of this company looked at legal issues and business issues so differently from how I would tackle the issues. It has been a really great experience delving into the mind of a great businessman.

Do you want to be a guarantor?

Are you sure you want to sign that guarantee?

What is a Guarantee? What happens if you sign on that dotted line on behalf of your family or friends?

A guarantee is a contract whereby one person agrees with another to pay some debt or perform some act or duty owed by a third person. This third person remains however primarily liable for such payment or performance and the person giving the guarantee will only become liable on the default of the third party.

The parties to a guarantee contract are:

§  The Creditor: The person receiving the benefit of the guarantee is called the creditor. This is usually the bank, finance company, supplier or lender.

§  The Principal Debtor: The person who is borrowing the money or obtaining the benefit of the contract.

§  The Surety or Guarantor: The person who provides the guarantee is called the surety or the guarantor.

In order for a contract of guarantee to be enforceable, it must be in writing and signed by all the parties. For eg. If you are providing a loan to a friend "A", it is not sufficient for "B" the person who is going to guarantee the loan to say that he will guarantee the loan. It must be in writing.

What are your liabilities when you sign a contract of guarantee?

The extent and nature of the liabilities of a surety or guarantor will depend on the words of the contract of guarantee. Some guarantees are limited for a fixed amount. Some guarantees are for an unlimited amount. Whatever is alleged as being guaranteed, the court will interpret the contract of guarantee strictly and a surety will not be liable beyond the precise terms of his or her commitment.

An example : A surety's guarantee to find a replacement tenant for a shop at a specified rental and for a term of three years was satisfied by the surety finding a person who was willing to become a tenant on the prescribed terms. The surety is not held to guarantee the solvency of the replacement tenant or the conduct or performance of the replacement tenant.

Sometimes there may be two or more persons who enter into a contract of guarantee. The liabilities of the sureties or guarantors are in most cases joint and several. This means that when there is a default by the principal debtor, the creditor is free to take action either against one or both of the sureties.

An example : B, C & D guarantee to pay Z a sum of $100,000 in case X cannot pay Z. X defaults. Z sues B only because B has assets sufficient to meet the debt.

B cannot say that it is unfair and demand that Z sue all the guarantors as they should be jointly liable.

However after B has paid the sum of $100,000 to Z, B has the right to claim contributions from C & D in what ever proportions they have agreed upon.

What are your rights as a guarantor?

After the guaranteed debt has become due but before the surety or guarantor has been asked to pay for it, the surety or guarantor may require the creditor to call upon the principal debtor to pay off the debt.

At any time after the debt is due, the surety or guarantor may apply to the creditor and pay him off. Upon being provided with proper indemnity for costs, he may sue the principal debtor in the creditor's name or in his own name if he has obtained an assignment of the guaranteed debt.

As soon as the surety or guarantor has paid to the creditor what is due to the creditor under the contract of guarantee, he is entitled to "step into the shoes" of the creditor and avail himself to all the rights possessed by the creditor in respect of the debt, default or miscarriages to which the guarantee relates.

Thus upon payment, the surety or guarantor has a right to the benefit of all the securities which the creditor has received from the principal debtor.

For example: Where the guaranteed debt is secured by a mortgage executed by the principal debtor, the surety or guarantor is, on payment of the debt in full, entitled to a transfer of the mortgage.

The surety or guarantor has also rights, either express or implied against the principal debtor or his estate for indemnification. The right includes the ability to recoup the amount which the surety or guarantor has actually paid for the principal debtor together with interest. Should the surety or guarantor suffer damage beyond the principal and interest which he is compelled to pay under the contract of guarantee, he is also entitled to recover that damage as well.

Discharge of the Guarantee

Payment made by the principal debtor of the guaranteed debt will normally discharge the surety or guarantor.

Before signing a contract of guarantee

It is of utmost importance that you understand the legal consequences of acting as a guarantor. Before signing on the dotted line, it is advisable to consult a lawyer so that he can explain to you your rights and liabilities.

Common instances of the need to provide guarantee

(a) An incorporated proprietary limited company seeking a business overdraft facility or loan. The Bank providing the overdraft facility or loan will call upon the directors of the company to stand as sureties or guarantors.

(b) An incorporated proprietary limited company leasing office premises. The landlord will require the directors to stand as guarantors for the due performance of the terms of the lease.

(c) When a family member wishes to buy a property and has insufficient income. A person with an alternative source of income and who has assets may be requested to stand as a guarantor.

What to Do

Very often, you may receive a request to stand as a guarantor. The 1st thing to ask yourself is whether you really should do it. The answer depends on assessing the risk involved and the person you are going to guarantee. If in doubt, the best course is to decline to be a guarantor. In the event that you cannot decline, then the next best thing is to try to limit the guarantee. Whatever it is, you should seek legal advice. Tan and Tan Lawyers will be pleased to advise you if the need arises.

Some Examples of clients we have helped when we give guarantee advice

We are often asked by clients to provide a certificate of independent advice as a requirement from the banks before they will lend the borrower moneys. We are often surprised at how the brokers who have arranged the loans never protected the borrower as much as possible.

For example:

You have your principal home which is valued at $600,000 with a mortgage of $100,000 only. You then decide to buy an investment property for $400,000 and wish to borrow $400,000 from the bank to buy the investment property. You approach the broker and he smiles and says, yes , the loan can be done. Just give the Bank a mortgage over the investment property and your family home to get a loan of $400,000.

What the broker should do is to:

1.      Ask the bank to let you draw out a further loan of $80,000 from your home which only has a mortgage of $100,000 currently. By getting a further loan of $80,000, you now have a loan of $180,000 secured on your home.

2.      You then use the $80,000 as a deposit for the purchase of the investment property. You tell the bank to take a mortgage over the investment property ALONE. So you have an investment property worth $400,000 with a mortgage of $320,000 or a 20% down payment for the investment property.

3.      Now what happens if you default on the investment property loan as a result of not finding a tenant? Well, the bank takes possession of the investment property if you default. As the investment property is secured by a mortgage over ONLY the investment property, they can only take the investment property away.

Compare this to where the broker has asked you to give the bank your home and the investment property as security. The first thing the banks will do if there is a default is to take your home. That is because there is more equity in your home then the investment property.

This is especially crucial if for example you are a parent and your child asks you to use your home as a security for them to buy their 1^st home.  If you have enough equity in your home, you should take a further loan on your home. You then use the moneys to lend it to your child so that they can use the moneys as a deposit for their 1^st home.

To go even further, you then get your child to give you a second mortgage over their 1^st home. By doing that, you secure your loan to them against creditors and also protect your loan against your child’s spouse if there is a relationship breakup.

See how crucial it is to get good advice? Do feel free to make an appointment with Raymond Tan of Tan and Tan Lawyers before you sign that loan and guarantee document. Do it as soon as possible. It is often difficult for us to assist if the loan documents have all been processed and settlement is urgent.

To Cut A Long Story Short

We were asked by the son of a client to witness a guarantee to the bank for a loan for the son to purchase a property. The banks usually require a solicitor to provide independent legal advice before they will allow the loan to be drawn. The son had failed to fully inform his father that as part of the guarantee, the bank also wanted the father to include the father's property as security. 

Upon being fully informed as to the contents of the guarantee, the father of course declined to stand as guarantor

Moral of the story: Make sure you know what you are signing. Those fine prints between the lines are fine prints which need to be carefully considered.

Tan and Tan Lawyers receive accreditation as a Quality Practice Standard law firm

The Law Society of Western Australia’s Quality Practice Standard




As part of Tan and Tan Lawyer’s corporate  aim of constantly evolving and improving, we have been awarded a Quality Practice Standard accreditation on 17 August 2010.

The Law Society of Western Australia developed the Quality Practice Standard to recognise WA Law firms that strive to provide superior service standards to their clients by implementing regulated internal procedures and practice to better protect and serve the interest of their clients.

Of a list of over  190 law firms that have applied, there are only 43 WA firms that have been accredited. Tan and Tan Lawyers have become the 44th law firm in Perth to be accredited.   The accredited firms have all gone through a lengthy process of streamlining and implementing internal procedures to ensure their services remain at a consistent high standard.

We have also been honoured as one of only 2 law firms that receive accreditation on their first attempt.
The Quality Practice Standard exceeds the legal requirements of the State laws regarding the operation of law practices.

Tan and Tan Lawyers’ authorised use of the QPS Logo means that clients are assured that Tan and Tan Lawyers maintains a high standard of service.
The law firms which have been accredited are audited each year to ensure that they remain compliant with the standards.

If you need more information regarding the Quality Practice Standards, please visit http://www.lawsocietywa.asn.au

Tan and Tan Lawyers receive accreditation as a Quality Practice with the Law Society of WA

On 17 August 2010 after over 6 mths of preparation, we have been awarded the Law Society of Western Australia's accreditation as a Quality Practice.

The Law Society of Western Australia developed the Quality Practice Standard to recognise WA Law firms that strive to provide superior service standards to their clients by implementing regulated internal procedures and practice to better protect and serve the interest of their clients.

Of a list of over  190 law firms that have applied, there are only 43 WA firms that have been accredited. Tan and Tan Lawyers have become the 44th law firm in Perth to be accredited.   The accredited firms have all gone through a lengthy process of streamlining and implementing internal procedures to ensure their services remain at a consistent high standard.

We have also been honoured as one of only 2 law firms that receive accreditation on their first attempt.
The Quality Practice Standard exceeds the legal requirements of the State laws regarding the operation of law practices.

Tan and Tan Lawyers' authorised use of the QPS Logo means that clients are assured that Tan and Tan Lawyers maintains a high standard of service.

The law firms which have been accredited are audited each year to ensure that they remain compliant with the standards.

What does that all mean to you as a client?

It means that you can be assured that your case will receive the full attention that a client is entitled to expect and demand.

It means that at Tan and Tan Lawyers, we will protect your interest and save you money.

If you need more information regarding the Quality Practice Standards, please visit http://www.lawsocietywa.asn.au

Your duty as a host of a party

Dear Readers

I am pleased to present my latest and last article from the Perth Woman magazine. 

My contract with the magazine has expired and I have decided to look for an alternative avenue for my writing release.

I am however very happy with the content of this last article which I believe is very close to the heart of my many readers.

The question is : What are my responsibility as a host of a party?

Yes, we all hold parties at some time or other. The office party, the bucks night, the hen's night etc. What happens if someone gets pissed and has an accident?

Well, the article from Perth Woman is essential reading and I hope it enlightens you as to your responsibilities.

Drink safe and enjoy yourself.