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Joint Venture Agreements

Discussion in 'General Property Chat' started by Agent99, 22nd Aug, 2016.

  1. Agent99

    Agent99 Well-Known Member

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    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 ?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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

    dabbler Well-Known Member

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    Nightmare.
     
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  4. JDM

    JDM Well-Known Member

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    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.
     
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @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
     
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  6. dabbler

    dabbler Well-Known Member

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    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.
     
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  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    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
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    thats what it is - a relationship.
     
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  9. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Yes!
     
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  10. Agent99

    Agent99 Well-Known Member

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

    dabbler Well-Known Member

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    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.
     
  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Of course it would be.
     
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