When the Independent Professional Adviser is Written Out

When the Independent Professional Adviser is Written Out of the Contract by an Unwary Transfer Company

This results in a denial to your petition

Unfortunately, this happens today, as current as a few months ago in 2014.  Not all transfer companies are unwary.  This doesn’t mean the problem can’t be fixed.  You can go back and petition again if the problem is amended.

The transfer company is required to pay up to $1,500 for an attorney or other professional to advise you; this is called the independent professional adviser[1].

It doesn’t matter if you the payee:

a.  go through with the transfer

b.  the transfer is denied

c.  whether the attorney shows up to court

d.  if you use all of the $1,500

e.  switch attorneys

f.  spend a little here, and a little there – incrementally

It is the law that the transfer company (transferee) pays up to $1,500

The transfer company, or any other entity does not have the authority to ignore that responsibility.   The transfer company does not have the authority to write into the contract that they are going to pay all costs “except for the fees and expenses charged by any attorney representing Seller…”  That is against the law.

[1] INS. CODE 10139(h) “the transferee shall pay the fees of the payee’s counsel, accountant, or actuary, regardless of whether the transfer agreement is approved, and regardless of whether the attorney, accountant, or actuary files any document or appears at the hearing on the petition for transfer, in an aggregate amount not to exceed one thousand five hundred dollars ($1,500)”

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