REAL ESTATE GLOSSARY
Non-Recourse
Non-Recourse Loan
Financing generally limiting recovery to collateral, subject to negotiated exceptions.
What does Non-Recourse mean?
Financing generally limiting recovery to collateral, subject to negotiated exceptions. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Non-Recourse in context
A property loan may be non-recourse except for fraud, misapplication of funds or other carve-outs.
Why it matters in financing
Non-Recourse can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related real estate terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.