While most professional attorneys should be familiar with potential liabilities associated with drafting an informative legal opinion letter, even they can get caught in unexpected legal issues of their own. If you dont stick to sensible boundaries, you can not only put yourself at risk but your clients as well. Here are three things to avoid the fallout from an attorney’s opinion letter.
Do Your Research
If you have any questions about underlying loan documents, its crucial to do your research before signing a legal opinion letter. Then, if problems still exist, only sign the letter by including an assumption about the existence of consideration.
Its also essential that you understand any documents referenced in your letter. Before issuing a legal opinion letter, all documentation must be complete with appropriate exhibits. You should also verify each form and assure they are complete with the right exhibits attached.
Avoid Title Opinions
To avoid any unnecessary legal fallout, attorneys should avoid letters on titles. Only incorporate a title policy when title and priority are involved. Otherwise, its best to stay away from stating that a borrower grants a bank priority of trust on a parcel.
Attorneys representing clients with complex transitions often leaves room for potential liability risks. This is why verifying documentation, avoiding title opinions, and researching when drafting a legal opinion letter is crucial to preventing unnecessary fallout.