What is a Letter of Instruction in a mortgage context?

In the context of a mortgage, a Letter of Instruction is primarily a request that a borrower gives to their lawyer to take specific actions on behalf of the lender. This document usually outlines the tasks that the lawyer must perform to facilitate the closing of a real estate transaction, such as disbursing funds, registering the mortgage, or handling legal documentation. It serves as a means of communication from the lender to their legal representative via the borrower, ensuring that all parties are aligned on the necessary steps to complete the mortgage process.

This understanding distinguishes it from other options. While other documents may relate to interest rates, agreements, or confirming loan amounts, they do not capture the essence of the Letter of Instruction, which is focused on the legal representation and actions necessary to proceed with the mortgage transaction.