When it comes to real estate partnerships, it`s crucial to have a partnership agreement in place. A partnership agreement should define how the partnership operates, the responsibilities of each partner, and the distribution of profits and losses. Here is a sample real estate partnership agreement to give you an idea of what to include in your own partnership agreement.
This section should include the names of the partners, the name of the partnership, and the purpose of the partnership. It should also define the term of the partnership and explain how the partnership may be terminated.
II. Capital Contributions
This section should outline how much capital each partner is contributing to the partnership and how it will be used. It should also detail the procedure for additional capital contributions if needed.
III. Profit and Loss Distribution
This section should specify how profits and losses will be distributed among the partners. It may be a fixed percentage or may vary based on the amount of capital each partner contributed.
IV. Management and Control
This section should outline how the partnership will be managed and who has control over day-to-day decision making. It may also explain the role of each partner in the management of the partnership.
This section should detail the procedure for dissolving the partnership. It may include a buyout option, how assets will be divided, and the process for ending the partnership.
VI. Non-Compete and Non-Disclosure
This section should outline the obligations of the partners regarding non-compete and non-disclosure agreements. It may include restrictions on working with competitors or disclosing confidential information.
VII. Dispute Resolution
This section should detail the procedure for resolving disputes that may arise between the partners. It may include mediation, arbitration, or going to court.
VIII. Governing Law
This section should specify the governing law that will be used to interpret and enforce the partnership agreement. It may also detail the jurisdiction in which disputes will be heard.
This section should include the signatures of all partners to indicate their agreement to the terms of the partnership agreement.
In conclusion, a real estate partnership agreement is a crucial document that defines the terms of your partnership. It is important to ensure that the agreement is comprehensive and includes all relevant information to avoid misunderstandings and disputes in the future. Use this sample as a guide when creating your own partnership agreement.