Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

Carve-outs (lending)

Provisions within nonrecourse commercial real estate loans where the borrower may become personally liable in the event of certain egregious acts (e.g. fraud). Recently, lenders have expanded the scope of carve outs to include risks of exposure to the property's economic deterioration or neglect.

Source: NCREIF PREA | Date: 23 October 2026 | ID: D0222 | Version: 2