In bankruptcy, a case involving an entity that owns a single real estate property or project other than residential real property with fewer than four residential units that generates substantially all of the gross income of the debtor (§ 101(51B), Bankruptcy Code).

SARE cases are usually two-party disputes and do not resemble typical Chapter 11 business reorganization cases. In SARE cases, a secured creditor may foreclose on its collateral unless, within the first 90 days of the bankruptcy case (or a later date extended by the court for cause), the debtor either:

(§ 362(d)(3), Bankruptcy Code.)

Courts have significantly narrowed the types of SARE properties from the statutory definition, excluding hotels, senior housing facilities, processing facilities, and any business involving manufacturing, sales, or services. Only where the property is the business, such as apartment buildings, shopping centers, and undeveloped parcels of real property, is a property considered SARE.

For more information on SARE cases, see Practice Note, Automatic Stay: Overview.