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Real Estate Profit Sharing Agreement
"I need a Real Estate Profit Sharing Agreement for a mixed-use commercial building in Jakarta, where my company owns the property and will share profits 70-30 with an operating partner who will manage the retail and office spaces."
1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration numbers for companies
2. Background: Context of the agreement, including property ownership status and parties' intention to enter into profit-sharing arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Net Profit', 'Gross Revenue', etc.
4. Property Details: Detailed description of the real estate property subject to the profit-sharing arrangement, including legal title and registration details
5. Profit Sharing Structure: Detailed breakdown of how profits will be calculated and distributed between parties, including percentages and payment periods
6. Rights and Obligations: Specific responsibilities and rights of each party regarding the property and profit-sharing arrangement
7. Financial Provisions: Details of financial arrangements, including expense allocation, accounting requirements, and payment mechanisms
8. Property Management: Arrangements for day-to-day management of the property, including maintenance and operational decisions
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Representations and Warranties: Legal assurances and declarations made by each party
11. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law clauses
12. Miscellaneous: Standard legal provisions including notices, amendments, and severability
1. Development Plans: Include when the property will undergo development or renovation during the agreement period
2. Marketing and Promotion: Include when parties agree to specific marketing arrangements for the property
3. Insurance: Include when specific insurance requirements need to be detailed beyond standard property insurance
4. Environmental Compliance: Include when the property has specific environmental considerations or requirements
5. Third Party Management: Include when a professional property manager will be appointed
6. Exit Strategy: Include when parties want to specify conditions for selling the property or transferring interests
7. Force Majeure: Include when parties want specific provisions for unforeseen circumstances affecting the property or profit-sharing arrangement
1. Property Details Schedule: Detailed legal description of the property, including certificates, permits, and land rights documentation
2. Profit Calculation Schedule: Detailed methodology for calculating profits, including allowable expenses and accounting procedures
3. Financial Reports Template: Template for regular financial reporting and profit distribution calculations
4. Management Procedures: Detailed procedures for property management and decision-making processes
5. Insurance Requirements: Specific insurance requirements and minimum coverage levels
6. Maintenance Schedule: Schedule of regular maintenance and responsibilities
7. Required Permits: List of all required permits and licenses for property operation
8. Party Representatives: List of authorized representatives for each party and their contact details
Authors
Real Estate
Property Development
Commercial Property
Residential Property
Hospitality
Retail
Industrial
Mixed-Use Development
Property Investment
Construction
Legal
Real Estate
Investment
Finance
Operations
Compliance
Asset Management
Development
Property Management
Risk Management
Real Estate Director
Property Manager
Investment Manager
Legal Counsel
Chief Financial Officer
Asset Manager
Development Director
Investment Analyst
Property Operations Manager
Compliance Officer
Real Estate Partner
Investment Director
Portfolio Manager
Real Estate Consultant
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