A guide to our real estate finance (also known as property finance) resources.
Scope of this note
This note is a guide to our resources about real estate finance. Usually, in a real estate finance transaction, a lender or lenders will lend money to a borrower to enable it to do one or more of the following:
Apply that money towards buying a new or existing property or development.
Apply that money towards the cost of developing a property or properties.
Invest that money in its property business generally.
Use that money to refinance any of the above.
Real estate finance: general
Investment finance
For an overview of a real estate finance transaction where the loan is used to buy property that has already been built and which will be held for investment purposes, see Practice note, Real estate finance (investment): overview.
For information on the roles and responsibilities of a project monitor (sometimes, also known as a technical adviser), including the advantages to a funder and the project if a project monitor is appointed, see Practice note, Project monitoring.
For a guide to our resources relating to the debt financing of energy, infrastructure and other capital-intensive projects, including private and public sector projects carried out under the private finance initiative (PFI) or as public private partnerships (PPPs), see Practice note, A guide to key resources: project finance.
For an overview of green loans, which outlines the nature of a green loan, the Green Loan Principles and drafting points to consider when documenting a green loan, see Practice note, Green loans.
For an overview of social loans, which looks at the nature of a social loan, the Social Loan Principles and drafting points to consider when documenting a social loan, see Practice note, Social loans.
For an overview of sustainability-linked loans, which outlines the nature of a sustainability-linked loan, the Sustainability-Linked Loan Principles and drafting points to consider when documenting a sustainability-linked loan, see Practice note, Sustainability-linked loans.
Real estate is an important asset class for Sharia-compliant transactions and Islamic banks. For information on the key issues for Sharia-compliant financing of commercial real estate using asset-based and asset-backed structures, see Practice note, Sharia-compliant financing of commercial real estate.
For information on key drafting and legal issues for a lender's lawyers to consider when drafting a security document creating a legal mortgage over real property (often referred to as a legal charge) and security over related assets, see Practice note, Drafting a legal mortgage: issues to consider.
Partnerships are often used to hold property. For information about taking security from a partnership, a limited partnership formed under the Limited Partnerships Act 1907 or an LLP (including how those types of partnership contract and the type of security that can be taken), see Practice note, Taking security from partnerships.
Security trusts
For an overview of the nature and purpose of a security trust deed in syndicated lending transactions, including a description of the key provisions of such a document and an explanation of practical issues to consider when drafting or advising on their use, see Practice note, Security trust deeds: overview.
For an introduction to the different methods of perfecting security, the basic rules governing priority and contractual ways that the rules can be varied, see Practice note, Perfection and priority of security.
For an overview of the issues that need to be considered when taking security over an asset located outside England or Wales, or from an entity incorporated in a jurisdiction other than England and Wales, see Practice note, Taking cross-border security.
For information on how a lender enforces security over the assets of a corporate security provider (including issues to be considered before enforcing security and information on enforcement rights available to a lender, when those rights can be exercised and the main methods of enforcing security), see Practice notes, Enforcing security: overview and Mortgages and charges over land: Lender's remedies.
For a note that examines the legal background and case law relating to subordination of debt and analyses different methods used to alter the priority of debts, see Practice note, Subordination.
The general tax issues that arise in a real estate finance transaction are similar to those arising in other commercial lending transactions but there are some issues specific to loans secured by property. The following resources provide an overview of these issues.
Environmental issues in real estate finance transactions
Environmental issues are important in real estate finance transactions. Lenders usually carry out environmental due diligence on the land to determine what protections and other provisions should be included in the finance documents to address environmental issues. For a note on environmental issues that can arise in finance transactions, see Practice note, Environmental issues in finance transactions.
Key real estate finance standard documents, clauses and drafting notes
Below are links to key real estate finance standard documents and clauses (which contain integrated drafting notes). For a full set of real estate finance standard documents, clauses and drafting notes, see the Standard documents and clauses tab on the Real estate finance topic page.
For a debenture granted by a corporate borrower in favour of a single lender, including a legal mortgage over specified property owned by the borrower at the date of the debenture and a fixed charge over other property, see Standard document, Debenture.
For a duty of care agreement between a borrower, a property manager (or managing agent) and a security trustee or lender, see Standard document, Duty of care agreement.
Links to Practical Law's resources on real estate finance and related Practical Law services
Practical Law Finance resources on real estate finance
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