3 Key Differences Between Title Insurance & An Attorney Opinion Letter 

08/31/2026 10:16 AM       Mark Goodman

Everybody wants to save money where they can, but at the same time, exposing yourself to risk on the backend just to save yourself a little money up front can be incredibly costly. That’s certainly true when it comes to researching a property ahead of a purchase. When investigating a property, you can typically have it researched by a title company or by an attorney. 

A title investigation and owner’s title insurance coverage issued by a title company will typically be more expensive than having a lawyer draft what’s known as an attorney opinion letter (AOL). But as you’ll see, the peace of mind and the protection you get from title insurance usually outweighs the small price you might save with an AOL.  

1. Best Intentions Vs. Contracted Obligation  

With an AOL, you are essentially getting a researched opinion on the property that the seller has the legal authority to sell it to a buyer. The attorney will research public records, investigate for the existence of liens and really do their best to say with the best of intentions, “This property looks clear of title issues based on what I can tell.” 

However, as the old adage goes, “The road to hell is paved with good intentions,” and you can end up in your own version of hell if you assume that a well-intended lawyer will provide you with a legal foothold in the event of an issue. They will try their best, but they aren’t typically legally obligated to pay your damages if a title issue is eventually discovered. When you secure owner’s title insurance, you are purchasing a contractual obligation from the insurance company that will cover your interests in the event a title defect is discovered. Both parties will try their best to discover issues, but only title insurance will pay you in the event of a valid title claim. 

2. Unsuccessful Claim Costs 

Title insurance will also protect you if you ever have to defend yourself against a claim in court. Even if the claim ends up being bogus, if you only secured an AOL, the duty to defend yourself will fall on you. Hiring a lawyer to sort it all out will prove quite costly, even if you win your case. If you secure title insurance, your policy places the duty to defend on the insurance company. 

3. It’s Not The Obvious Issues That Sink A Title 

An attorney’s opinion letter involves scouring public records for information that allows the attorney to render a judgment about the validity of the owner and the title. The problem here is that oftentimes it’s not the obvious, clearly findable in public records errors that cause problems for title owners. It’s a forged document that appeared legitimate. It’s a long lost heir emerging to claim what they believe is rightfully theirs. It’s an unrecorded easement or a misindexed lien that eventually comes to light when the county clerk’s office is upgrading their document recording system. 

These hidden issues likely won’t be caught by an attorney or possibly even your title insurance provider, but only one option offers you recourse in the event they come to light. Title insurance covers you for these hidden title issues, whereas an attorney generally isn’t liable for these types of undiscovered title concerns. 

Title insurance is the simplest way to achieve peace of mind by protecting yourself against any and all title defects that could arise days, years or decades into your property ownership. Now is not the time to cut corners and pinch pennies. Protect your investment and your family’s financial future by securing an owner’s title insurance policy. To learn more about these policies, give the team at Commercial Partners a call today at (612) 337-2470.