What is a Real Estate Partnership Agreement?
A Real Estate Partnership Agreement is a document used to create a joint venture between two or more individuals to purchase or manage real property.
It establishes the ground rules of the partnership, including each member’s commitments and responsibilities in the event of a legal dispute or another disagreement. This document will outline the terms of the partnership, including the ownership, management structure, and any other relevant details.
Any legal partnership should be established in writing so that the agreement is legally binding.
When to Use a Real Estate Partnership Agreement?
A Partnership Agreement isn’t required by law, but it can be helpful in several scenarios. For instance, a real estate equity partnership agreement can help track how much each partner invested in the deal and how much of the business each partner owns.
A Real Estate Partnership Agreement can also help protect your relationships if you purchase or manage a property with your family members.
Business ventures can often strain relationships, so it can help to have the partnership outlined in writing from day one to avoid confusion.
So, it would be best to consider using a real estate partnership agreement any time you form a business arrangement involving the purchase or management of property and need to outline the terms and conditions of that arrangement to avoid any confusion or disagreements.
What to Include in a Real Estate Partnership Agreement?
A real estate investment partnership agreement should contain at least the following information:
- The names of the partners
- Each partner’s investment and equity
- Where you are doing business
- The address of the property (or properties)
- The length of the partnership (if applicable)
- The purpose of the partnership
- How profits and losses will be distributed
- The process if a partner wants to leave or be bought out of the agreement
- Any other relevant bylaws
You may choose to add additional clauses to suit your needs, or you can always amend the agreement at a later date. Customize the document to fit the circumstances, or use the sample Real Estate Partnership Agreement below.
Real Estate Partnership Agreement Sample
Here is a printable Real Estate Partnership Agreement template you can use to start your business venture. Choose between our blank PDF or Word templates and fill them out independently.
