Side deeds in real estate finance

A side deed (also commonly referred to as a “tripartite deed” or a “multiparty deed”) is an agreement that supplements or sits with the primary contract and is required to manage variations and termination of that contract. Side deeds are entered into between the lender, the relevant project counterparty (such as a builder) and the borrower and are intended to allow the lender to keep the project performing if the borrower defaults on any of its obligations under the relevant project document.

This guidance note discusses:

• • the project counterparties who will typically be required by the lender to enter into a side deed;
• • the key provisions included in side deeds; and
• • practical tips for negotiating a builder’s side deed in the context of a development finance transaction.

See Side deeds in real estate finance.