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