Notice from Lender’s Attorney to Borrower
Basic Information
Date:
Borrower:
Lender:
Loan: Loan evidenced by a note dated [date] in the original principal amount of $[amount], executed by Borrower, payable to Lender, and secured by a deed of trust on the property described therein.
Attorney:
Disclosure of Relationship
This notice discloses the relationship between Attorney, Borrower, and Lender.
1.Lender has engaged Attorney to prepare the note, deed of trust, and other documents relating to the Loan.
2.Attorney has not researched or examined title to the property and makes no representation or warranty about the condition of title, access to the property, or any other matter that might be revealed by an examination of a survey, title commitment, or the property itself. In preparing the documents, Attorney has relied on information provided by other parties, including the title company. If Borrower is purchasing the property, Borrower is cautioned to assure itself that the deed to Borrower conveys what Borrower has contracted to purchase and otherwise conforms with the earnest money contract.
3.Attorney represents only Lender and no other party involved in this transaction, although Attorney’s legal fees may be paid by Borrower.
4.Attorney’s legal fees are based on a per document or per transaction charge rather than an hourly fee. The legal fees are intended to provide fair compensation for time and labor involved in information gathering, document preparation, processing, and review. No charge has been made for preparation of Truth in Lending disclosures or for any disclosures required by the Real Estate Settlement and Procedures Act, if Attorney has prepared any of those documents.
5.Borrower has the right to be represented by its own attorney and to have its attorney review the Loan documents (including the deed, if there is one) and closing documents and be present at the closing of the Loan.
6.If any documents to be used are prepared by someone other than Attorney, Lender reserves the right to have Attorney review and approve those documents to ensure they properly protect Lender’s interests.
By signing below, Borrower indicates that it has been notified of and understands its right to independent legal counsel and that Attorney represents only the interests of Lender and not those of Borrower or any other party.
[Name of borrower]
NOTE TO TITLE COMPANY OR CLOSER: Please return the executed original of this notice to [name and address].