Commercial Real Estate & Land Loan Scanner
Audits commercial acquisition loans, industrial plot mortgages, construction financing facilities, and land development notes for strict debt service coverage ratios (DSCR), cross-default triggers, and personal indemnity carveouts.
Drop your document here, or browse files
Supports PDF, Word (.docx), and Text (.txt) up to 12 MB • Maximum 25 pages
What to Watch Out For Before Signing a Commercial & Land Agreement
Loan contracts are drafted by institutional attorneys to maximize lender security and minimize borrower flexibility. Understanding how individual provisions operate empowers you to negotiate fairer terms and avoid unexpected defaults.
High-Priority Risk Areas Specific to This Agreement
- 1Bad-boy carveout guarantees piercing non-recourse protections
- 2Strict Debt Service Coverage Ratio (DSCR) default triggers
- 3Unilateral lender control over tenant leasing and sublease approvals
- 4Mandatory borrower capital calls upon interest reserve depletion
- 5Broad environmental and hazardous material indemnification liabilities
Essential Clauses Analyzed by Our Engine
Triggers full personal liability of principals upon technical bankruptcy filing or transfer breach.
Lender right to sweep rent accounts or declare default if property net operating income dips.
Withholding construction disbursements until all sub-contractors sign complete waivers.
Borrower personal lifetime indemnity for pre-existing environmental pollutants.
Questions You Must Ask the Lender Before Signing
Never sign until you have received clear, written answers to these essential terms:
- •Under what specific circumstances does the non-recourse loan convert into full personal guarantor liability?
- •What is the minimum required DSCR threshold, and is there a cure period before cash flow is swept?
- •Does the lender have approval rights over routine commercial tenant lease modifications?