From Real Estate Opinion Letter Practice, Chapter ?
Purpose and Function of Opinions
As already indicated, the most common context for opinions in real estate transactions is a mortgage loan. Indeed, opinions are rarely requested or given in other real estate transactions, such as purchase and sale agreements, leases and construction contracts. Opinions are more common in the case of real estate syndications, yet their essential elements typically address tax and securities issues, not real estate matters. Similarly, while opinions are sometimes requested in sale/lease back transactions, this structure is often economically equivalent to a real estate loan and therefore elicits the same concerns as do mortgage loan transactions. In short, real estate opinion letters rarely involve transactions other than mortgage loans or their equivalents.