Exhibit 10.6
AGREEMENT TO SEEK A LENDER
(Agency Agreement)
Date: _________________________
I engage REDWOOD MORTGAGE (the Broker) to act as my exclusive agent to find
a lender or lenders willing to loan money to me in the principal amount of
$_______________, bearing interest at ______ percent (__________%) per annum
according to the terms of the Mortgage Loan Disclosure Statement/Good Faith
Estimate (the Disclosure Statement) I have executed with Broker, a copy of which
is attached to this Agreement, or upon other terms and conditions as I approve.
The loan is to be secured by a Deed of Trust on real property owned entirely or
in part by me at _________________________.
I agree to pay a brokerage commission, processing charges and fees for
arranging the loan in accordance with the Disclosure Statement.
If my loan application is approved by Broker in its sole discretion, Broker
shall use its best efforts to obtain a lender or lenders willing to loan the
requested funds to me. The Broker shall have the exclusive right to act as my
agent in this regard for a period of sixty (60) days from the date the loan
application is approved, except that if this loan application is for a loan
which is subject to California Business and Professions Code 10243, then the
period of agency shall be forty five (45) days from the date the loan
application is approved.
I recognize that in addition to acting as my agent, Broker may also be
acting as agent for lenders seeking borrowers such as private parties,
institutional lenders or government agencies, including the lender which
ultimately lends me money. I agree that Broker may act as dual agent for me and
for any lender to me. In addition, I recognize that Broker may, if it so
chooses, lend me its own funds or funds which it controls.
Broker shall incur no liability to me if it is unable to obtain a lender
interested in loaning money to me, and Broker has no obligation to loan me its
own funds.
If loan funds are not disbursed because of any information I fail to
disclose accurately, for instance the existence and terms of any lien affecting
the property which will be security for this loan, or actual title to such
property, I understand that Broker has performed its duties and may incur
expenses and liabilities to other parties. Therefore, I agree to pay Broker the
commission and all other expenses incurred in arranging the loan as listed in
the Disclosure Statement as may be provided by law.
I hereby authorize Broker to deliver to a prospective lender credit
information available to Broker, including reports received from Credit
Reporting Agencies.
If applicable, Broker shall retain possession of original Note and original
Deed of Trust, and forward them in accordance with the instructions of the
lender.
I recognize and agree that this agreement may be terminated by Broker at
any time before funding of the loan to me. I further recognize and agree that
this agreement shall automatically terminate when the loan funds are disbursed
to me and that Broker has no further obligations to me at that time and that
Broker may continue to act as agent for lender during the time the loan to me is
outstanding.
I agree that all claims or disputes between me and Broker arising out of or
relating to the loan, including Brokers arranging of the loan and my disclosure
of information to Broker shall be determined by binding arbitration in
accordance with the rules of the American Arbitration Association and that the
judgment of the arbitrators may be entered in a court of law. I UNDERSTAND THAT
BY SIGNING THIS AGREEMENT I AM GIVING UP THE RIGHT TO A JURY OR COURT TRIAL AND
AGREEING TO HAVE DISPUTES DECIDED BY NEUTRAL ARBITRATORS.
I have read the above Agreement and I do agree.
____________________________________ ___________________________
(Name) (Date)
____________________________________ ___________________________
(Name) (Date)
THE REAL PROPERTY WHICH WILL SECURE THE REQUESTED LOAN IS OWNER-OCCUPIED
Yes ______ No _______
