Guarantee of Non-Recourse Carve-Outs
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
A guarantee of non-recourse carve-outs is a separate guaranty in which a sponsor agrees to be personally liable on an otherwise non-recourse loan if certain borrower 'bad acts' occur.
A non-recourse loan limits the lender to the property. The carve-out guaranty is the lender's protection against the borrower acting badly. It's often called a bad boy guaranty.
Two Kinds of Triggers
- Loss carve-outs: the guarantor covers the lender's actual losses from things like fraud, waste, misapplied rents or insurance proceeds, and environmental issues.
- Springing full recourse: the entire loan becomes personally recourse for events like a voluntary bankruptcy filing or an unauthorized transfer or additional debt.
What to Negotiate
Limit triggers to acts within the borrower's control, add cure periods, clarify that a failure to pay due to lack of cash flow is not a trigger, and cap environmental exposure where possible. Read the guaranty alongside the non-recourse loan agreement; the definitions usually live in the loan documents.
A Hypothetical Downtown Orlando Example
A sponsor's office loan in downtown Orlando is non-recourse with a carve-out guaranty. In this example, when occupancy drops, the borrower hands the property back through a deed in lieu. Because no bad act occurred, the guaranty isn't triggered. Had the borrower used tenant security deposits to pay itself, the guarantor would owe those losses. Hypothetical scenario.
From the Desk
Non-recourse is only non-recourse if you never give the lender a reason to spring it.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Guarantee of Non-Recourse Carve-Outs Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is a non-recourse carve-out guaranty?
A personal guaranty that applies only if specified bad acts occur.
What is springing recourse?
When certain events make the entire loan personally recourse.
What are typical loss carve-outs?
Fraud, waste, misapplied rents or insurance proceeds, and environmental liabilities.
Is a voluntary bankruptcy a trigger?
Typically yes, often for full recourse.
Can carve-outs be negotiated?
Yes, including scope, cure periods and caps.
Article Summary
The carve-out guaranty keeps a non-recourse loan honest: loss carve-outs cover damages, and springing triggers make the whole loan recourse.
Key Takeaways
- ✓Separate personal guaranty.
- ✓Applies only to bad acts.
- ✓Loss vs. springing recourse.
- ✓Bankruptcy and transfers often spring.
- ✓Negotiate scope and cure periods.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Oct 4, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.