When it comes to any business venture, having a solid partnership agreement in place is crucial. This is especially true in the real estate industry, where deals can involve large sums of money and complex negotiations. If you`re considering partnering with someone on a real estate project, it`s important to have a clear and comprehensive partnership agreement in place. Here`s an example of what your partnership agreement could look like.
[Partnership Agreement]
This Partnership Agreement (the “Agreement”) is made and entered into as of [date] by and between [Partner 1 name] and [Partner 2 name], collectively referred to as the “Partners.”
Purpose of Partnership
The purpose of this partnership is to [describe the purpose of the partnership, such as purchasing, developing, and managing real estate properties].
Capital Contributions
Each Partner shall contribute the following to the partnership:
– [Partner 1 name] shall contribute [dollar amount] in cash, and [list any other non-cash contributions].
– [Partner 2 name] shall contribute [dollar amount] in cash, and [list any other non-cash contributions].
Ownership Percentage
The Partners shall own the partnership as follows:
– [Partner 1 name] shall own [percentage] percent of the partnership.
– [Partner 2 name] shall own [percentage] percent of the partnership.
Profit and Loss Distribution
The Partners shall share profits and losses as follows:
– [Partner 1 name] shall receive [percentage] percent of the profits and losses.
– [Partner 2 name] shall receive [percentage] percent of the profits and losses.
Management and Control
The Partners shall have equal management and control over the partnership. All major decisions, including the purchase, sale, and leasing of properties, shall require the approval of both Partners.
Term and Termination
This partnership shall begin on [date] and shall continue until terminated by mutual agreement of the Partners or for other reasons as set forth in this Agreement.
Indemnification
Each Partner shall indemnify and hold harmless the other Partner from any claims, damages, or liabilities arising out of the partnership.
Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the state of [state].
Entire Agreement
This Agreement contains the entire understanding between the Partners and supersedes all prior negotiations, representations, and agreements, whether written or oral.
Conclusion
Partnering on a real estate project can be a great way to pool resources and achieve shared goals. However, it`s important to have a clear and comprehensive partnership agreement in place to ensure that everyone`s interests are protected. This example agreement should give you a good starting point for drafting your own partnership agreement that meets the needs of your specific project.