Passive Real Estate Partnership Agreement- Download Free Template

REAL ESTATE PARTNERSHIP AGREEMENT (PASSIVE)

This Real Estate Partnership Agreement (the “Agreement”) is effective [DATE],

BETWEEN: [INVESTOR NAME], (the “Investor”), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:

[COMPLETE ADDRESS]

AND: [OWNER NAME], (the “Owner”), an individual with his main address located at:

[COMPLETE ADDRESS]

Collectively, the Investor and Owner shall be referred to as the “Partners.”

WHEREAS, the Owner has real estate property located at [ADDRESS OF PROPERTY] (“Property”) which is intended to be renovated and sold under this partnership;

WHEREAS, the Investor intends to contribute investment capital to the partnership.

NOW, THEREFORE, the Partners agree as follows:

PURPOSE

The purpose of the partnership is to renovate, repair, and sell

the

roperty

as expeditiously as possible and to conduct such other activities necessary to accomplish the purpose of this Agreement.

FORMATION

The

art

ners

hereby develop a

eal

state

artnership

greement pursuant to the laws of

[STATE/PROVINCE].

The said partnership shall be described exclusively by this Agreement, regardless of the

way

title to Property may be taken. This Agreement shall not be construed as a general partnership between the

art

ners

TERM

The partnership shall begin as of the date of this Agreement and shall be in effect until terminated by mutual consent or when

the

sales proceed

of the

roperty

are

distributed pursuant to the stated provisions, subsequent to the closing of the sale of the Property.

CONTRIBUTION OF CAPITAL

The

Investor shall contribute all money needed to qualify for any financing,

renovation and repair of the

roperty

and incur

all the

expenses

for the sale of the

roperty.

NATURE OF PERFORMANCE

The Partners shall be solely responsible for the performance and execution of the responsibilities

mutually agreed upon.

The Investor shall contribute all

money

required

manage, promote, market, and any other expenses and mortgage payments during the period of ownership of the subject

roperty and qualify for any financing.

The Owner shall be exclusively responsible for the everyday management,

renovation, and marketing of the subject

roperty for resale, thereby protecting the investments for both

artners.

PARTNERSHIP DECISIONS

All decisions, including but not limited to the purchase of assets by the partnership, any loan or other obligation to be undertaken by the partnership, and the sale of any asset of the partnership shall require the approval of all of the

artners involved in this Agreement.

PROFIT AND LOSS

Subject to the other provisions of this Agreement, the net profits and losses of the

artnership after calculating all the expenses

of the sales of the

roperty

, for both accounting and tax purposes, shall accrue to and be borne by the Partners according to the following schedule:

S.NO

NAME OF PARTNER

PROFIT AND LOSS SHARE

[NAME OF INVESTOR]

(INVESTOR)

[PERCENTAGE]%

[NAME OF OWNER]

(OWNER)

[PERCENTAGE]%

LANGUAGE OF THE CONTRACT

The language of the Agreement shall be

the

English Language, which shall be

the

binding and controlling language for all matters relating to the meaning or interpretation of the Agreement.

SEVERABILITY

If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or u

nenforceable, it is the

Partners

’

intent that such provision be

reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable

and the remainder of the provisions of this Agreement shall in no way be affected, impaired or invalidated as a result.

MODIFICATIONS

Except where provision for modification is made elsewhere in this Agreement

all articles of this Agreement may be modified through amendments to the Agreement

NOTICES

Any notices or delivery required here shall be deemed completed when hand-delivered, delivered by agent, or seven (7) days after being placed in the post,

postage prepaid, to the

Partners

at the addresses contained in this Agreement or as the

Partners

may later designate in writing at the

address provided by the

Partners

FORCE MAJEURE

For

the

purposes of this

ection, "force majeure" means an event beyond the control of either

art

ner

, which by its nature could not have been foreseen by such

art

ner

, or, if it could have been foreseen, was unavoidable, and includes without limitation, acts of God, storms, floods, riots, fires, sabotage, civil commotion or civil unrest, interference by civil or military authorities, acts of war (declared or undeclared) and failure of energy sources.

either

art

ner

shall be under any liability for failure to fulfill any obligation under this Agreement, so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered, or delayed as a consequence of circumstances of force majeure

provided that such

art

ner

shall have exercised all due diligence to minimize to the greatest extent possible the effect of force majeure on its obligations hereunder.

TERMINATION

The present Agreement shall be automatically terminated at the expiration of the period

the present Agreement unless the Agreement is renewed at the end of the mentioned term.

However, both

tners

shall have the right to terminate the present Agreement by providing each other with a prior written notice of 30 days.

GOVERNING LAW AND JURISDICTION

This

greement shall be construed and enforced in accordance with the laws of

[STATE/PROVINCE].

The Part

ners

submit to the jurisdiction of the courts of

[STATE/PROVINCE]

for the enforcement of this Agreement or any arbitration award or decision arising from this Agreement

MEDIATION AND ARBITRATION

In the event a dispute arises out of or in connection w

ith this Agreement, the Part

ners

shall attempt to resolve the dispute through friendly consultation.

If the dispute is not resolved within a period of [

NUMBER OF

DAYS] days

then any or all outstanding issues may be submitted to mediation in accordance with any statutory rules of mediation. If mediation is not successful in resolving the entire dispute or is unavailable, any outstanding issues shall be submitted to final and binding arbitration in accordance with the laws of

[STATE/PROVINCE]

The arbitrator's award shall be final, and judgment may be entered upon it by any court having jurisdiction within

[STATE/PROVINCE].

INDEMNIFICATION

artners shall be indemnified and held harmless by the

artnership from and against any and all claims of any nature whatsoever, arising out of a Partner's participation in

artnership affairs.

A Partner shall not be entitled to indemnification under this section for liability arising out of gross negligence or

wilful

misconduct of the Partner or the breach by the Partner of any provisions of this Agreement.

ENTIRE AGREEMENT

This Agreement contains the entir

greement between the

Partners

. All negotiations and understandings have been included in this Agreement. Statements or representations which m

ay have been made by any

art

ner

to this Agreement in the negotiation stages of this Agreement may in some way be inconsistent with this final written Agreement. All such statements are declared to be of no value in this Agreement. Only the written terms of this A

greement shall bind the

Partners

IN WITNESS WHEREOF, the Partners have executed this Agreement on [DATE].

INVESTOR OWNER

Authorized Signature Authorized Signature

Print Name and Title Print Name and Title

Passive Real Estate Partnership Agreement- Download Free Template Passive Real Estate Partnership Agreement

Passive Real Estate Partnership Agreement