Enforcement options in respect of real estate finance transactions

A lender’s security will typically become enforceable once an actual or potential default subsists under the finance documents. The lender will then have broad powers to do whatever it deems necessary or desirable in connection with the restructuring or enforcement of the real estate finance loan.

This guidance notes discusses:

• • the issues a lender may consider before enforcement (including any restructuring options available to it);
• • the ways in which security over the property may be enforced under a real property mortgage or general security deed, including:
• • ◦ appointment of a receiver;
• • ◦ exercising a power of sale;
• • ◦ exercising rights of set off and combination; and
• • ◦ obtaining foreclosure.

See Enforcement options in respect of real estate finance transactions.