Liability of the Property Manager and the Special Servicer Sample Clauses

The 'Liability of the Property Manager and the Special Servicer' clause defines the extent to which the property manager and special servicer are responsible for losses, damages, or claims arising from their actions or omissions in managing the property or servicing the loan. Typically, this clause outlines specific circumstances under which these parties may be held liable, such as cases of gross negligence, willful misconduct, or breach of contract, while often limiting liability for ordinary mistakes or actions taken in good faith. Its core function is to allocate risk between the parties by clarifying when and how the property manager and special servicer can be held accountable, thereby reducing uncertainty and potential disputes regarding responsibility for adverse outcomes.