Deed-in-Lieu of Foreclosure Agreement (Commercial Real Estate)

by Practical Law Real Estate

A form deed-in-lieu of foreclosure agreement between the lender and the borrower of a commercial real estate loan. In this Standard Document a defaulting borrower voluntarily transfers title to the real property to avoid loan foreclosure. This Standard Document is jurisdictionally neutral but can be customized to applicable facts and governing law. This Standard Document contains integrated notes that discuss important topics including closing conditions, closing procedures, closing fees and expenses, and the parties' respective representations, obligations, and liabilities. This Standard Document also contains drafting and negotiating tips for lenders, borrowers, and their counsel.