LEO: Real Estate - Duty to Disclose Failure to  LE Op. 966


Real Estate - Duty to Disclose Failure to Obtain Extension.


September 30, 1987


A law firm advised a client on the structuring of a delayed tax re-

exchange of real estate. An extension should have been obtained from the

Internal Revenue Service to extend the protected exchange period when a

delay in closing occurred. The firm has a duty, even though the firm was

not hired to prepare the tax return, to disclose the information regarding

the failure to obtain the extension before filing the tax return. [ DR:6-



Committee Opinion September 30, 1987