LEO: Violation of Terms of Deed of Trust/Duty  LE Op. 471

 

Violation of Terms of Deed of Trust/Duty to Disclose.

 

September 20, 1982

 

There is no duty on the part of an attorney to advise the holder of the

first deed of trust, who is not his client, that a violation of the terms

of the deed of trust have occurred in a subsequent closing. The attorney,

however, must disclose to his client that the client's conduct is in

violation of the terms of the deed of trust and must explain the likely

consequences of such violation.

 

Committee Opinion September 20, 1982