Resources > Glossary > Notice of Right to Cancel

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Notice of Right to Cancel

Function: noun

See, "Right to Cancel" This document applies only to principal residences only, and not investment or rental properties. A loan document that gives the borrower the right to cancel their loan within three days, not including Sundays or Federal holidays. The borrower would be able to fax a request or send a request in writing to cancel their loan. A signing agent should be familiar with this document. Signing agent's frequently inform the borrower that they can read their loan documents for the next three days after signing them since they can cancel by midnight on the third day after the signing. Often times, borrowers take hours reading every word of the document which is very time consuming for the notary. In an ideal world, the lender would send the borrower copies of the loan documents a few days ahead of time so the borrower could read in depth before the notary shows up. Lenders generally do not do this, because they want to put the borrower under pressure to sign, so that they are less likely to back out of the loan agreement.

Definition 1:
This document is often called the right to rescind which is a document that offers the right of rescission.