Commercial Lending Where There Is A Limited Partnership

A limited partnership is a business structure comprised of at least one general partner and one limited partner. General partners are liable for all of the partnerships' obligations and losses whereas limited partners enjoy limited liability up to their investment amount. The limited partners have no right to participate in the management of the partnership or to act on its behalf. A limited partner's right to the property of a limited partnership is a right to equal division of profits on the basis agreed upon by the limited partnership. Limited partnerships are beneficial structures because they provide the limited partners with limited liability.

With respect to ownership of real property, in Ontario limited partnerships are not commonly registered on title. In a limited partnership arrangement, registered title is often held by a title nominee or by the general partner of the limited partnership, in both instances, for and on behalf of the limited partnership