Free Real Estate Partnership Agreement Template

While not legally required, a real estate partnership agreement is a good idea whenever two or more people own property together. It is especially useful when defining responsibilities, contributions, or ownership splits.

You should consider using a partnership agreement when:

• Buying property with friends, family, or business partners
• Flipping houses, managing rentals, or developing real estate together
• Pooling money to invest in multiple properties
• Splitting ownership of different projects or tasks

Even if you’re partnering with someone you trust, having a written agreement helps protect the relationship and avoid confusion later.

A real estate partnership agreement helps organize your investment and protects everyone involved. Here’s why having a written agreement matters:

• Avoids confusion: Writing out roles, money decisions, and ownership helps everyone stay on the same page
• Protects your investment: Explains how to handle profits, losses, and risks
• Can be used in court: If there’s a dispute, a signed agreement is legally binding
• Plans for the future: It covers what happens if someone leaves or the partnership ends

Whether you’re working with friends, family, or business partners, a written agreement adds security and peace of mind. You can use a free real estate partnership agreement template from Legal Templates to create your own.

Real estate partnerships can take different forms depending on how the partners want to share responsibilities, profits, and decision-making. These are the most common structures:

• General Partnership: All partners share ownership, responsibility, and personal liability. This is the most common setup for most real estate projects
• Limited Partnership: One or more partners manage the property (general partners), while others contribute financially but don’t participate in daily operations (limited partners)
• Active Partnership: Partners are directly involved in managing the property, such as handling tenants or hiring contractors
• Passive Partnership: Partners invest money but do not take part in daily decisions or management
• 50/50 Partnership: Both partners share everything equally, including ownership, profits, and duties. This setup is commonly used by friends and business partners

A clear agreement helps avoid confusion, especially when money and resources are involved. Here are the most important sections you should include when setting up your real estate partnership agreement:

Roles and Responsibilities

Clearly outline what each partner will do. This can include daily tasks like managing the property, handling repairs, or overseeing finances. Clear roles and responsibilities prevent overlap and confusion.

Partner Contributions

List what each partner is bringing to the table. Contributions may include cash, property, labor, or other assets that support the partnership.

Ownership Percentages

Specify how much of the partnership each person owns. This often matches each partner’s contributions but can be negotiated.

Profit and Loss Distributions

Explain how profits and losses will be shared between the partners. This can match ownership shares or be based on how much money or work each partner puts in.

Decision-Making and Voting Rights

Detail how major decisions will be made. Will every partner have an equal vote, or will votes be weighted by ownership?

Financial Records and Fiscal Year

Decide who will keep track of income, expenses, and records for each fiscal year. Good bookkeeping helps at tax time and supports transparency.

Dispute Resolution

Include a plan for resolving any disagreements. This could involve mediation, a majority vote, or other agreed-upon methods.

Exit Strategy and Dissolution

Explain what happens if a partner wants to leave or if the partnership ends. Cover buyouts, transferring shares, or selling the property.

Follow the steps below to build a strong and clear partnership agreement that protects all parties involved.

Identify Partners and Define Goals

Start by listing all partners and defining your shared goals. Are you buying a rental property or flipping houses? Each partner should understand the agreement’s purpose and what the joint venture aims to achieve.

Set Capital Contributions and Profit Allocation

List what each partner contributes, cash, property, or service, and when the contribution will be made. Then, decide how profits and losses will be divided:

• Equally among all partners
• Based on each partner’s financial contribution
• Or using a custom split

Making these terms clear upfront helps prevent future disputes and sets realistic expectations for everyone involved.

Establish a Decision-Making Process

Outline how business decisions will be made. You can choose a majority rule, unanimous votes, or assign authority to specify partners for specific tasks. This helps avoid disagreements and keeps operations running smoothly.

Plan for Disputes and Exit Scenarios

Include what happens if a partner wants to leave, retires, passes away, or becomes inactive. Address:

• Voluntary and involuntary withdrawal
• Buyout terms
• How disputes will be resolved (e.g., mediation or arbitration)

Adding this to your real estate partnership agreement can help reduce costly legal issues later.

Review and Revise With All Parties

Before signing, all parties should review the agreement and suggest changes.

Sign the Agreement and Keep Copies

Once finalized, all partners should sign and keep a copy of the agreement. A signed document is legally binding and can be enforced in court. Notarization is optional, but recommended to strengthen the document’s credibility.

Review our sample real estate partnership agreement template to understand what to include. Then use our step-by-step questionnaire to create a customized agreement tailored to your property goals and partner arrangements.