Updating Real Estate Finance Opinion Letter Guidelines—Next Steps

An Addendum to this Newsletter presents my article about updating Real Estate Opinion Letter Guidelines. (Citations to content referred to here are in the Addendum.) Real Estate Opinion Guidelines was published in 2003 and has continued as an expression about customary practice in real estate finance opinion letters. Much has happened since its publication, as noted in the Addendum. The variously-named opinions committees of the ABA Real Property, Trust and Estate Law Section, the American College of Mortgage Attorneys, and the American College of Real Estate Lawyers are beginning work prompted by requests to “update Real Estate Opinion Guidelines.” The Working Group on Legal Opinions, a foundation dedicated to the study of and education about legal opinions, has a newly-formed real estate related opinions group that may join in this also.

Consideration of updating Real Estate Opinion Guidelines involves many questions. Included among them are the following:

• Should Real Estate Opinion Guidelines continue to attempt to integrate Guidelines for Preparation of Closing Opinions as partially updated by the Statement of Opinion Practices or should restated Real Estate Opinion Guidelines be separately stated?
• What content of the real estate specific Real Estate Opinion Guidelines needs to be revised to reflect evolved customary practice and current resources?
• With publication of the three Real Estate Reports, what function should separate Real Estate Opinion Guidelines serve?

Working through the questions and answers will take time and concerted effort. The content of the Addendum was prepared to serve as a common starter for that discussion.