WebCredenza 2024 Guarantees in real estate transactions

Guarantees undergird most real estate transactions.  Lenders, investors and others are often unwilling or unable to finance or otherwise support a real estate transaction without certain substantial guarantees.  These guarantees may concern repayment of loan proceeds or performance of other services – construction, maintenance and waste prevention, environmental indemnity, etc.  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.
• Guarantees of construction loans.

Opinions and positions stated by presenters of MoBarCLE programs are those of the presenters and not necessarily those of The Missouri Bar. This program is intended as information for lawyers in Missouri, in conjunction with other research they deem necessary, in the exercise of their independent judgment.