Richard Crouch Discusses Contractual Remedies

Woods Rogers Principal and Business Section Chair Richard Crouch was a guest on a recent Commercial Real Estate Pro Network podcast episode. In the conversation with host J. Darrin Gross, Richard discusses typical transaction structures, as well as contractual remedies and how to get them right before things go sideways.

When it comes to syndicators protecting themselves in contracts, Richard explains, “So every deal can be tailored to specific deal points, but there are some principles that I try to incorporate into every deal. I encourage them to make sure they get it right on the front end in every deal. It’s easy to discount some of those key terms because everyone is excited about the deal and thinks it is going to do well. But it’s very important to memorialize it, to have an operating agreement that will cover how distributions are handled and how private placement memoranda and subscription agreements that have standard disclosures and disclaimers are needed any time you are handling securities, even if they are not publicly traded.”

Richard advises syndicators to be as transparent as possible about all fees and clearly disclose them in investor materials to avoid surprises later.

You can listen to this episode of Commercial Real Estate Pro Network here, watch it on YouTube here, or access it on your favorite podcast platform.