Borrower's Affidavit
(Financing) (Pro-Lender) (AL)

Summary

This borrower's affidavit may be used in an Alabama real estate financing transaction. It includes representations and warranties that commercial mortgage lenders typically require in connection with the funding of a commercial mortgage loan. This template is drafted from the lender's perspective but includes guidance for the borrower. This template includes practical guidance, drafting notes, and alternate clauses. This affidavit contemplates that the borrower owns the real property and is obtaining a first mortgage loan on the property or a refinancing of the property. If the borrower does not yet own the property that will be the collateral for the loan (e.g., if this affidavit is being given in connection with an acquisition financing transaction), the representations and warranties of the borrower will likely be limited to items that do not pertain to the property condition, such as execution of the loan documents, due formation (if borrower is a business entity), and any direct actions the borrower may have taken with respect to itself or the property (e.g., the borrower has not filed bankruptcy). Where the borrower representations are limited, the lender and the title company will typically rely on the owner's affidavit (sometimes also referred to as a seller's affidavit) for detailed property representations. The owner's affidavit is a document provided to the lender and / or the title company by the seller/owner in connection with the sale of the property to the buyer. For an owner's affidavit template, see Owner's Affidavit and Gap Indemnity to Title Company. For more information on owners' affidavits, see Owners' Affidavits and Gap Indemnities. For more information on commercial real estate financing transactions in Alabama, see Commercial Real Estate Financing (AL). For a full listing of key content covering purchasing and selling commercial real estate, see Purchasing and Selling Commercial Real Estate Resource Kit.