Generative AI And The Ethical Real Estate Lawyer: Applying ABA Formal Opinion 512 to Transactional Practice

J. Cliff McKinney II | Fall 2026

Generative artificial intelligence has quietly become part of real estate law practice. Unlike older technology, which primarily assisted with organizing, searching, or formatting files, new generative AI tools can draft legal documents, summarize records, identify potential issues, and suggest actions in natural legal language. Since transactional law relies heavily on drafting documents, verifying details, and tracking deadlines, it’s easy to see why these tools are appealing.

These new tools present new ethical issues for lawyers to navigate. Generative AI does not merely accelerate legal work; it reshapes how lawyers interact with information. AI outputs can appear authoritative while being incomplete, misleading, or flatly wrong. They can incorporate confidential information into opaque systems with unclear retention and reuse practices. And they can significantly reduce the time required to perform tasks that have traditionally formed the basis for legal fees.

The ABA introduced ABA Formal Opinion 512 on July 29, 2024, to help provide guidance for lawyers using AI. ABA Formal Opinion 512 does not create a new body of “AI ethics.” Instead, it reaffirms foundational principles of professional responsibility as they apply to AI. The Opinion recognizes that technology may assist the lawyer, but it does not assume the lawyer’s ethical obligations. As the Opinion emphasizes, generative AI tools are “a moving target—indeed, a rapidly moving target,” and lawyers must continually assess their use against existing duties.

The above is an excerpt of an article published for The Abstract, a publication of the American College of Mortgage Attorneys, and is reprinted with permission. You may click the link below to read the full article.

A managing member of Quattlebaum, Grooms & Tull PLLC, Cliff McKinney speaks nationwide on the rapidly evolving role of AI in law practice, covering cutting-edge tools, prompt engineering, ethical obligations, risk management, and actionable strategies lawyers can implement immediately. He has presented for organizations including the American Bar Association (ABA), the American College of Real Estate Lawyers (ACREL), the American College of Mortgage Attorneys (ACMA), and has written extensively on AI for ACMA, USLAW, and the Arkansas Law Review. Mr. McKinney holds a Prompt Engineering Specialization certification from Vanderbilt University and is a Fellow of both the American College of Real Estate Lawyers and the American College of Mortgage Attorneys.

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