JointVentureAgreementforRealEstate

ThisJOINTVENTUREAGREEMENTisexecutedthis______dayof_________________,20_____,byand
between_____________________________________________,hereinafterreferredtoasFirstParty,
whoseaddressis______________________________________________________________________,
wastheBuyeronaContractofSalewith___________________________________________________,
forthepurchaseoftherealpropertylocatedat______________________________________________
______________________________________________,hereinafterreferredtoasthePremises;and
__________________________________________________,hereinafterreferredtoasSecondParty,
whoseaddressis______________________________________________________________________,
hasinterestofpurchasingthePremises;andFirstPartyassignsitsinterestsintheContractofSalefor
thePremisestoSecondParty;andFirstPartypaidadepositof$____________________towardsthe
purchasepriceofthePremises:
ITISherebyagreedthat:
1.
SecondPartyshallperformunderthecontractofsaleforthepurchaseofthePremises,andpay
thepurchaseprice$________________________,subjecttoanyadjustmentsincludingbutnotlimited
to,realestatetaxes,titleinsurance,recordingfees,andattorneysfees;
2.

FirstPartyshallreceiveacreditorpaymentforthe$_____________________deposit;

3.
SecondPartyshallpayupto____________________towardtherepairsandrenovationsofthe
Premises,hereinafterRepairExpenses.SecondPartyshallfurtherpaytheoperatingexpenses,
includingtaxes,water,sewer,andinsurance,hereinaftertheOperatingExpenses;
4.
TheRepairExpensesandOperatingExpensesshallbepaiddirectlytothevendorbytheSecond
Partyuponpresentationoftheinvoice;
5.
FirstPartyshallmanagethePremises.ThedutiesofFirstPartyshallinclude,butnotlimitedto,
keepingtruerecordsandbooksofaccounts,contractforallrepairsatcustomarytermsandrates,
submitthecontractorinvoicestoSecondParty,findapurchaser,andotherwisetendtothePremises;
6.

FirstPartyshallprovidewrittenstatusreportstoSecondPartyeveryweekafterthepurchase;

7.
FirstPartyshallfindabuyerforthePremises,andtheclosingofthesaleshalltakeplacewithin
_______days/months/yearsoftheclosingofthepurchase(theonlyexceptionsbeingwar,strike,or
severeweatherconditionswhichmakeperformanceinfeasible).SecondPartyshallacceptanyofferof
purchaseintheminimalamountof$________________,subjecttomortgageapprovalandtimely
closing.Anydecisionwhethertoacceptorrejectapurchaseofferbelow$__________________shallbe
inthesolediscretionofSecondParty;
8.
Uponclosingofthesaleofthepremises,FirstPartyshallbeentitledto________%ofnetprofit
or$____________andSecondPartyshallbeentitledto________%ofthenetprofitor$____________.
Netprofitshallbedefinedastheproceedsfromtheresale,plusrents(ifany),lessinvesteddollars,
improvements,financingcosts,taxes,insurance,water,sewer,electric,governmentaland
environmentalpayments,professionalfeesincludingengineering,architectural,andlegal,realestate
transferfee,andclosingrelatedfees.
Sample contract from www.reicircle.com. REI Circle does not warrant or assume any liability or responsibility, legal or otherwise, for
the accuracy, completeness, or usefulness of any content herein. It is provided with the understanding that this contract is not to be
used for purposes of rendering legal, accounting, or other professional services. Please consult your attorney or other professional
advisor to discuss your specific situation and obtain the appropriate legal or other expert advice.


9.
FirstPartyshallpaymarketingcostsandrealestatecommission,ifany,associatedwiththesale
ofthePremises;
10.
FirstPartyshallnotbeentitledtoageneralcontractorsfeeoranyotherfeeotherthanthatset
forthinconnectionwiththeperformanceofitsduties;
11.
Intheeventtheresaleclosingdoesnottakeplacepursuanttothisagreementwithin_______
days/months/yearsofthedateoftheclosingofthepurchase,FirstPartysshareofthenetprofitshall
bereducedby$___________or_______%pereachmonth/yearexceedingtheoriginaltimespecified.
Intheeventtheclosingoftheresaledoesnottakeplacewithin_______months/yearsofthedateof
theclosingofthepurchase,FirstPartysdutiesshallcease,anditshallnotbeentitledtoanyshareof
profitsuponresaleoranyotherformofcompensation;
12.
Anydisagreement,disputeorcontroversybetweenFirstPartyandSecondPartyshallnotbethe
subjectmatterofalawsuit,butshallberesolvedinaccordancewiththeRulesoftheAmerican
ArbitrationAssociationwiththelosingpartypayingtheprevailingpartyscostsandreasonable
attorneysfees;
13.

EitherpartysinterestinthisAgreementshallnotbeassigned;

14.

ThisAgreementshallnotbeconstruedasapartnership;

15.
Intheeventofthedeath,adjudicationofincompetence,orbankruptcyofapartytothis
Agreement,theexecutor,administrator,committeeorotherlegalrepresentativeofsuchpartyshall
succeedonlytotherightofsuchpartytoreceiveallocationsanddistributionshereunder,the
Agreementshallnotbedeemednullandvoid.FirstPartyshallonlybeentitledtoadistributionbased
uponthereasonablevalueofthedutiesperformed;
16.

ThisAgreementshallbeconstruedinaccordancewiththelawsoftheStateof______________;

17.
ThisAgreementmaybeexecutedincounterpartsandeachcounterpartsoexecutedshall
constituteanoriginal,allofwhichwhentakentogethershallconstituteoneagreement,notwithstanding
thatallpartiesarenotsignatoriestothesamecounterpart;
18.
ThisAgreementmaynotbechanged,modified,waivedordischarged,inwholeorinpart,unless
inwritingandsignedbyallpartieshereto;
19.
IfanytermorprovisionofthisAgreementortheapplicationthereoftoanypersonor
circumstanceshalltoanyextentbeinvalidorunenforceable,theremainderofthisAgreementorthe
applicationofsuchtermorprovisiontopersonsorcircumstancesotherthanthoseastowhichitisheld
invalidorunenforceableshallnotbeaffectedtherebyandeachtermandprovisionofthisAgreement
shallbevalidandenforcedtothefullestextentpermittedbylaw;
20.
ThisAgreementistheentireagreementamongthepartieswithrespecttothesubjectmatter
hereofandsupersedesallprioragreementsrelativetosuchsubjectmatter.

_______________________________________
SignatureofFirstParty

______________________________________
SignatureofSecondParty

Sample contract from www.reicircle.com. REI Circle does not warrant or assume any liability or responsibility, legal or otherwise, for
the accuracy, completeness, or usefulness of any content herein. It is provided with the understanding that this contract is not to be
used for purposes of rendering legal, accounting, or other professional services. Please consult your attorney or other professional
advisor to discuss your specific situation and obtain the appropriate legal or other expert advice.