Selected Problems in Wrap-Around Financing: Suggested Approaches to Due-on-Sale Clauses and Purchaser's Depreciable Basis

Authors

Sanford M. Guerin, University of Denver College of Law

Abstract

This article will address two unresolved issues surrounding the WA transaction which result from the inherent flexibility available for negotiating financing terms in the absence of an institutional lender. Part I discusses the circumstances warranting exclusion of the WA loan from the purchaser's depreciable basis. Part II addresses whether, and when, a due-on-sale clause in the senior mortgage should negate the possibility of utilizing WA financing.

Recommended Citation

Sanford M. Guerin, Selected Problems in Wrap-Around Financing: Suggested Approaches to Due-on-Sale Clauses and Purchaser's Depreciable Basis, 14 U. Mich. J. L. Reform 401 (1981).
Available at: https://repository.law.umich.edu/mjlr/vol14/iss3/3