Joint Venture Agreements

Does anyone have experience good or bad relating to jv's ?
What sort of items should be in a written jv agreement ie money partner or not, start/ end dates, what ifs ?
Is there such a thing as a friendly JV agreement ?

 

Heaps of th8ngs to be covered which is why these run 30 to 50 pages.

 

Nightmare.

 

All I can say is make sure each party gets good, independent legal advice. I've seen a few go bad and it's never pretty.

 

@Blacky and I have talked about our JV quite a few times.
We have a good agreement (no we won't share it) but as much as possible needs to be pre-decided and written down.
If the agreement is fair then it's friendly.

If you can't handle the complicatedness (is there such a word?) and the project is very simple then consider going Tenants in Common 50:50. I'm not saying this is the best legal structure but if you were going to buy a site and subdivide it into 2 equal sized lots that go one lot to each owner on subdivision then this might be ok. You'd want to be in and out in minimal time - let's say 90-150 days to settle and subdivide

 

The problem is, having written or legal agreements *may* help, but probably only while both parties are being reasonable and rational.

See the thing about disagreements, is often people dig in, or become spiteful, or decide to try and break the other party down, and there are lot's of ways to do this and it all costs.

So get your agreements etc in place, but apart from having similar mindsets and goals, make sure you are just as able to fund a legal battle as your partner is, otherwise your stuffed if it goes wrong.

 

Reminds me of most marriages/divorce. Many divorces start out amicable until someone does something the other doesn't like then it goes to **** faster than a Lambo

 

thats what it is - a relationship.

 

Yes!

 

Thanks everyone, we had a proposal put to us and they kindly showed us their "friendly jv agreement", however it didnt look very friendly It appeared to be written by their lawyer to favor them and put all the risk onto the other party.....funny about that

 

You can probably tell I am not that fond of the idea, but playing devils advocate....

Docs written by solicitors often do not look friendly, and it may be written to be a bit more one sided, if they are decent, there will be no problem getting your solicitor to review and suggesting changes and maybe some things that favor you.

 

Of course it would be.

 

Yeah, I seen quite a few like that, you know the ones that are all over each other and making everyone awkward and squirm when it is fresh, then boom !

Relation shi*e !