Sample Joint Venture Agreement between Builder and Landowner

December 27, 2022 4:16 am Published by

When it comes to building developments, a joint venture agreement can be an effective arrangement between a builder and a landowner. This agreement is a partnership where both parties contribute resources and expertise to develop a property. In this article, we will take a look at a sample joint venture agreement between a builder and a landowner.

1. Purpose and Scope

The purpose of the joint venture agreement is to define the terms and conditions for the development of a property owned by the landowner. The scope of the agreement shall be limited to the specific property identified in the agreement.

2. Contributions

The builder shall contribute the necessary expertise, experience, labor, and equipment to develop the property. The landowner shall provide the land for the development. The builder and the landowner shall agree on the specific contributions of each party, including financial contributions, if any.

3. Ownership

The builder and landowner shall share ownership of the property according to the following provisions:

a. The builder shall hold a X% ownership interest in the property.

b. The landowner shall hold a Y% ownership interest in the property.

c. The builder and the landowner shall agree on the specifics of ownership, such as the allocation of profits, the transfer of ownership, and the allocation of liabilities.

4. Management

The builder shall be responsible for the day-to-day management of the project, including the hiring of workers and the purchase of materials. The landowner shall have the right to review and approve the plans and progress of the project, but shall not be responsible for the management of the project.

5. Duration

The joint venture agreement shall be effective upon the execution of the agreement and shall continue until the completion of the project, the sale of the property, or the termination of the agreement.

6. Termination

The joint venture agreement may be terminated by mutual agreement of the builder and the landowner, or by either party upon written notice to the other party. In the event of termination, the builder shall be entitled to receive a proportionate share of any profits earned up to the time of termination.

Conclusion

A joint venture agreement between a builder and a landowner can be an effective way to develop a property. The agreement should clearly define the contributions of each party, the ownership structure, the management responsibilities, and the termination provisions. The sample joint venture agreement outlined above can serve as a useful starting point for any builder and landowner looking to enter into a joint venture agreement.

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