Approving Attorney Opinion Letters In Lieu of Title Insurance Is Trending, But Use With Caution

Despite being more affordable than title insurance, attorney opinion letters should be used with caution when replacing title insurance. The costs savings associated with this practice might not justify the additional risk associated with it.

6 minute read September 01, 2024 at 12:07 AM
By
Ahmad H. Mango
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.

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