Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Approving Attorney Opinion Letters In Lieu of Title Insurance Is Trending, But Use With Caution
In the context of a real estate finance transaction, an attorney opinion letter (an AOL) is typically a legal opinion prepared by a licensed attorney that opines as to the authority of the borrower and the enforceability of the security instrument and the other loan documents. Customarily, an AOL does not opine as to the status of title, and the parties will rely on title insurance to confirm the priority of the lien of the mortgage. Unlike an AOL, title insurance is obtained to protect the owner and lender, as applicable, against any loss or damage resulting from defects in title. Nevertheless, some cities and counties require an AOL for matters that pertain to unity of title, permitting and zoning.
In 2022, Equitable Housing Finance Plans were approved by the Federal Housing Finance Agency (FHFA) which allowed for government-backed entities like Freddie Mac and Fannie Mae to accept, in limited circumstances, AOLs as an alternative to title insurance for a mortgage transaction. Discussion of AOLs for the purpose of this article will solely be focused on their use in lieu of title insurance; the proposed objective of approving the use of AOLs in lieu of title insurance; the risks associated with this practice; and the stance taken by reputable title underwriters with regard to real estate transactions that accept this practice.
This premium content is locked for Commercial Leasing Law & Strategy subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability
This article explores legal developments over the past year that may impact compliance officer personal liability.