Bank Loan agreement(housing)

[Mat Bruce]

Anyone knows if it is stated in your standard bank loan agreement that we MUST use their panel lawyers?

[birdy]

Normally yes, you have to use the panel lawyer. You can check with your lawyer if he is in the panel. Otherwise, u can ask the bank to provide you with the list of panel lawyers.

[Dervish]

I don't think it is stated in the standard loan agreement that you MUST use their panel lawyers. Most banks however will tell you that you must, reason being that their panel lawyers will always protect their interest first. You can still insist on using your own lawyer but the vetting time may take longer, i.e. on the bank side since those doing loans documentation may need to consult with their own panel lawyer too

[Mat Bruce]

Normally yes, you have to use the panel lawyer. You can check with your lawyer if he is in the panel. Otherwise, u can ask the bank to provide you with the list of panel lawyers.

You mean this is stated in the loan agreement or in the letter of offer?
If it is not, where does it says that we must use their lawyer? any black and white , I mean.

[Mat Bruce]

I don't think it is stated in the standard loan agreement that you MUST use their panel lawyers. Most banks however will tell you that you must, reason being that their panel lawyers will always protect their interest first. You can still insist on using your own lawyer but the vetting time may take longer, i.e. on the bank side since those doing loans documentation may need to consult with their own panel lawyer too

I heard that we are the customer and that we are paying for the fees, it does not makes sense that I pay a lawyer that does not take care of my interest first. I am confused.

[Dervish]

I heard that we are the customer and that we are paying for the fees, it does not makes sense that I pay a lawyer that does not take care of my interest first. I am confused.

Well, how shall I put this? If you use the bank's lawyer, the vetting process and all the legal ding-dongs will be processed more efficiently than if you, say ...choose another inexperienced lawyer who may fumble through the entire process. (Just using extremes here to explain my point). And just to expand on the inexperienced lawyer example above, the legal ding-dongs may sometimes stretch beyond the validity of the SPA and may incur extra charges. On the other hand, using the bank's panel lawyer, who are familiar with the bank's terms and conditions means expediting the entire process.

I'm afraid I haven't expressed myself very well but I do hope it clears your confusion.

[Dervish]

You mean this is stated in the loan agreement or in the letter of offer?
If it is not, where does it says that we must use their lawyer? any black and white , I mean.

I don't think it is stated in the loan agreement or L/O. Probably in their brochures...*grins* ...BTW, have you checked your L/O?

If I am not mistaken, the fire policy must be taken with their panel insurer, although that too is subject to negotiation. (Bank's L/O)

[Mat Bruce]

Well, how shall I put this? If you use the bank's lawyer, the vetting process and all the legal ding-dongs will be processed more efficiently than if you, say ...choose another inexperienced lawyer who may fumble through the entire process. (Just using extremes here to explain my point). And just to expand on the inexperienced lawyer example above, the legal ding-dongs may sometimes stretch beyond the validity of the SPA and may incur extra charges. On the other hand, using the bank's panel lawyer, who are familiar with the bank's terms and conditions means expediting the entire process.

I'm afraid I haven't expressed myself very well but I do hope it clears your confusion.

Thanks...I can see your pioint of view.
Who pays for the legal fees? I was told that I will be paying so why can't I select my own lawyer? The loan documentation according to my lawyer who has done many conveyances for me before (also loan agreements) is very standard.

[Dervish]

Thanks...I can see your pioint of view.
Who pays for the legal fees? I was told that I will be paying so why can't I select my own lawyer? The loan documentation according to my lawyer who has done many conveyances for me before (also loan agreements) is very standard.

The choice is still yours since you're paying for it anyway. Most people would just choose the bank's lawyer. It's called "Being Practical" ...taking the easy way out...
I hope all's well that ends well for you....