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Real Estate/Development

Mar. 25, 2010

Are Greater Liability Risks Ahead for Real Estate Investors?

Ivo Keller of Buchalter Nemer and Christine Griffith of SSL Law Firm ask whether it's "unfair" to assign real estate holdings to single purpose entities.

By Ivo Keller and Christine Griffith

Over the last two decades, it has become standard practice in the commercial real estate industry to assign individual holdings within a real estate portfolio to separate "single" or "special purpose entities," or SPE's. Attorneys cite many different reasons for this practice, but one common justification is that it allows investors to isolate the liabilities of each property and shield all other holdings from legal risks. However, a s...

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