Structuring Opinions of Counsel in Real Estate Finance TransactionsRead Time: 1 min
Commercial real estate loan transactions secured by real estate are often conditioned upon a third-party opinion letter which provides the opinion giver’s professional judgment on a range of legal issues. Opinion letters can present potential liability for the provider, but certain assumptions and qualifications, as well as client certificates as to factual matters, can be employed to limit counsel’s exposure. The ABA/ACREL/ACMA Real Estate Finance Opinion Report and UCC Opinion Report (the ABA Reports) provide useful guidance in preparing opinions that reflect customary practices generally accepted nationwide.
Member Marshall Grodner (Baton Rouge) will participate in a Strafford webinar panel on Wednesday, May 4, 2022, on best practices when drafting third-party opinion letters for commercial real estate finance transactions. Marshall and his co-presenter will cover the opinions required–including authority, enforceability, and property-related opinions–and the assumptions, limitations, and qualifications that counsel should include to limit exposure. They will also discuss strategies for counsel to reduce risk in providing opinion letters, and the extent to which the ABA Reports can be used as a reference in opinion preparation.