Guarantees in Real Estate Transactions - 2018

Guarantees undergird most real estate transactions.  Lenders, investors and others are often unwilling to finance or otherwise support a real estate transaction without certain substantial guarantees.  These guarantees may concern repayment of loan proceeds or cover a host of other performance benchmarks – construction, maintenance and waste prevention, environmental indemnity or something else.  The scope of guarantees is highly negotiated, particularly whether the guarantee is recourse or non-recourse and the scope of carve-outs from the guarantees. This program will provide you with a practical guide to negotiating and drafting guarantees in real estate transactions.  

• Types of guarantees – payment, performance, collection, completion
• Essential elements of a guarantee – consideration, scope, carve-outs, waivers
• Guarantees for property maintenance/no waste, environmental indemnity and other non-financial concerns
• Carve-outs – full v. partial, fraud, misappropriation, misapplication, failure to maintain, insurance, and more
• Special Purpose Entity issues – debt, solvency, separateness 
• Guarantees of construction loans

Speakers: Anthony Licata, Taft Stettinius & Hollister LLP, Chicago, IL and Richard R. Goldberg, Ballard Spahr, LLP, Philadelphia, PA

NOTE: This program was originally produced as a telephone seminar and is available on demand in streaming audio. This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics or elimination of bias credit.