KGeeson
Property Forum Staff
Forum Partner
What tips does anyone have (perhaps from your own experiences and learned lessons) for ensuring your interests (and cash investment) are protected as much as possible when entering into a JV?
N
nmb
Well-Known Member
Whether you are dealing with business acquaintances or friends there needs to be a legally binding agreement and all roles need to be clarified from day one. Many joint ventures start in a very balanced and encouraging fashion only to hit trouble with confusion about day-to-day management and the roles of the various parties.
A clear and concise document covering every detail of the joint-venture is a must have from day one.
A clear and concise document covering every detail of the joint-venture is a must have from day one.
Nicholas Wallwork
Editor-in-Chief
Staff member
Premium Member
Yes absolutely right... make sure the nature of the agreement is written down and a full "partnership agreement" is drawn up detailing the terms and roles of each partner. This is a must to avoid bad feeling later down the line if one party isn't pulling their weight for example...
Our JV agreements are much simpler as we just require finance JV partners so ours are more like loan documents with the funds fully secured on the assets we're buying so it's less about roles as our partners are mostly "silent" partners.
Whatever the nature of the agreement there needs to be some sort of contract though.
Our JV agreements are much simpler as we just require finance JV partners so ours are more like loan documents with the funds fully secured on the assets we're buying so it's less about roles as our partners are mostly "silent" partners.
Whatever the nature of the agreement there needs to be some sort of contract though.
