Once, your mortgage loan is approved and all the conditions are complete by the broker/ lender. The next step is to sign the closing documents prepared by your lawyer and the seller’s lawyer. Through, this process the lawyer provides the borrower’s independent legal advice that will explain the terms and conditions of the mortgage loan. There’re some questions that many people ask when they hear ILA, most of these questions can be answered by your lawyer.
What is ILA?
Is a document that shows the borrower has met with their lawyer, and he/she has explained the terms and conditions of the mortgage. The borrower attests he/she was not under any undue influence or duress when obtaining the mortgage.
When does this happen?
This, occurs in two occasions, when the borrower is a close family member or a friend. The borrower is obligated to attain a mortgage because of the close relationship. The second occurrence, is when the borrower’s mental state might be in question.
Who gets ILA?
2. Spouse’s not on title
3. Conflict of interest
4. Joint retainers
5. Acting as a mediator
In this case, we’re only referring to real estate transactions. The above list are some instances where a lawyer would recommend the client to go through ILA.
How do I get ILA?
When, the seller’s lawyer sends their closing documents to your lawyer. Your lawyer will contact you to sign the closing documents for the mortgage and conduct the ILA. The lawyer will provide legal advice to his/her clients only, not to the other party. The Lawyer is providing legal advice in good faith looking out for the borrowers interests only.
Why is it important?
The ILA is provided for the sole benefit of the borrower’s to understand the nature and consequences of the decision they made.
Thus, RateShop is a mortgage brokerage that has its own in-house lawyers. Our lawyers can guide you through the whole process. If, you have any specific questions give us a call today!