My parents wanted to purchase a farm tha...

Asked by Camille on 02-11-2023 16:34:13
Question posted in the General Law category relating to Gauteng

My parents wanted to purchase a farm that belonged to my grandparents. Both my grandparents have passed and my parents wanted to buy the whole farm. They did not have enough money so they approached LandBank. They could not apply using their names because my parents both have bad credit. So, my parents made me the director of one of their companies and used the company name, with me as the representative, to apply for the loan. They got the loan for about R2.5 million using my good credit score and my name. They have told me that they will pay the repayments and run the farm, all I have to do is sign the neccessary documents. I have signed the contract for the loan, which I now regret because it was not explained properly to me. I fear cancelling it because my parents might kick my out of the house. Will this have any repercussions on my credit in the future? How do I get myself out of this situation or how do I protect myself in the future? What happens when my parents fail to pay the repayments and I cannot pay them as well? I am only in my early twenties. Eseentially, my parents have used my name and signature for their gain.

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