Division C: Lender Remitting Funds Direct to Seller’s Agent

The Property Law Committee is aware that lenders occasionally insist on this.  The practice should be resisted because it takes control of settlement away from the Purchaser’s solicitor to that extent.  Where it happens, the Purchaser’s solicitor should obtain from the Seller’s solicitor a personal undertaking not to intromit with the funds from the lender until the Purchaser’s solicitor has remitted any balance of the funds and declared all funds delivered and settlement effected.

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