Legal Opinion Letters - Uses in Business law, Average Costs, and Applicability

The Legal Opinion Letter; Introduction

If you are a businessperson or have been involved in a civil legal matter, you may have come across the term "legal opinion letter" or "opinion letter". These documents can play a crucial role in any legal matter but particularly one grounded in business law via loans, as many lenders require a legal opinion before ever dispersing funds. However, they also play a crucial role in real estate law regarding property transactions and can often be used in place of title insurance.

Accordingly, legal opinion letters can greatly impact a number of legal scenarios. In this blog post, we will discuss the uses of legal opinion letters, when they may be required, and the average costs attorneys charge for opinion letters in Arizona, and our own costs for the same.

What is a Legal Opinion Letter or Attorney Opinion Letter ("AOL")

A legal opinion letter is a document produced by a lawyer or legal paraprofessional to provide a professional and informed assessment of a legal matter. This can include an evaluation of the strengths or weaknesses of a contract, a statement on the authenticity of certain legal documents, or an interpretation of complex laws that will or may impact a party.

Again, legal opinion letters are highly valuable in business transactions, as they provide a third-party professional assessment of the legal risks involved. When used in loan applications, they can assure lenders that a borrower's business is in good legal standing and/or that the provisions of a contract are enforceable on the borrower. Exemptions are often included in the latter, particularly pertaining to bankruptcy law.

Uses of Opinion Letters in Business and When They're Required

In the corporate world, legal opinion letters are often required by lenders in business mergers, acquisitions, and other corporate related transactions. They are also sometimes required by law, such as with the sell of restricted securities under the Securities and Exchange Commission's Rule 144. Accordingly, these are often called "Rule 144 opinion letters". Thus, in short, when it comes to business, opinion letters serve as a safeguard for all parties involved by confirming the legality and validity of transactions.

Apart from business and real estate, a legal opinion letter may also be used to assess the strengths and weaknesses of a case in a number of areas of law. This can be valuable knowledge for any party considering bringing a legal action. This is because filing fees with a Court can sometimes equal or even exceed the costs of a legal opinion.

Average Costs of Legal Opinion Letters and Our Fees

Like all legal services, the costs of legal opinion letters vary from state to state and locality to locality. In Arizona, attorneys typically charge anywhere from $1,000 to $3,000 for a legal opinion letter, depending on the complexity of the case and the time required to research and draft the letter. However, apart from location, the cost may vary depending on the expertise of the attorney and specific details of the case.

For civil law matters which are or may come before AZ Justice or Municipal Courts, we are authorized to issue legal opinions under ACJA § 7-210. Our fees for opinion letters range from $400 to $800, again, depending upon the time needed for research and time spent on drafting. For cases that are relatively straightforward, we generally charge a flat fee of $400 for our legal opinion letters.

Conclusion

In conclusion, legal opinion letters provide a crucial professional assessment of a number of legal matters and can greatly impact the outcome of almost any case. If you require a legal opinion letter, please schedule a free consultation with us today.