Resources > Glossary > Right to Cancel

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

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Common Terms 1   Common Terms 2

Right to Cancel

Function: noun

Definition 1:
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.

Definition 2:
Notaries need to be keenly aware of all of the Federal holidays. There are free rescission calendars available on the internet that identify these holidays. We also discuss these holidays on our Forum.

Definition 3:
The Right to Cancel is one of the most valuable documents to the loan signing agent. If the signing agent has only one hour for the appointment, but the borrower wants to read for three hours, the signing agent can inform the borrower that they have 72 hours to read the borrower's copies, and then cancel the loan if they have any issues.

Definition 4:
A Right to Cancel is a standard part of any residential non-commercial loan. Construction loans, commercial loans and loans to investors are not likely to have this document. The purpose of the document is to protect non-professional investors from making a mistake in the loan process and giving them a chance to back out if they have second thoughts, or if these is a problem with the information in their loan documents.