In general terms, independent legal advice is provided by an outside lawyer or paralegal who is unrelated to the client’s matter, associated parties, or the lawyer or paralegal, and who does not have a conflicting interest.
What does this mean when it matters for a mortgage?
When you have a house, and you need a co-signer and this co-signer has nothing to do with the house, then that co-signer will need Independent Legal Advice in order to sign off. In the closing of a mortgage transaction, the mortgage advice needs to be given by an independent lawyer outside the scope of the particular mortgage transaction.
An example of this would be a grandmother cosigning for her grandchild. Another example of this would be a wife not signing on a house being purchased by her husband – any home.
The cost of I.L.A. can range, but usually costs around $200.00 to $500.00 dollars, depending on which lawyer you use.
