Is it legal for a loan processor to ask the person who is providing gift money to the purchaser of the real estate to provide documentation regarding the money?

Get Legal Help Today

 Secured with SHA-256 Encryption

Is it legal for a loan processor to ask the person who is providing gift money to the purchaser of the real estate to provide documentation regarding the money?

Asked on June 20, 2015 under Real Estate Law, Washington

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, it is perfectly legal. It is voluntary on the part of banks and other lenders to make loans--no law requires them to do so. It being voluntary, they are free to put restrictions on lending, and to require any amount, kind, or level of information or documentation that they want before extending the loan. If you or the person providing the gift does not want to disclose this information, that is your right--and it is the lender's right to then say that your aplication is denied and you are not getting the loan.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption