Joint Venture Agreement Lawyers
Interested in joining forces with other real estate developers? — you have several options. For short-term projects and collective business goals, investors might want to consider forming a joint venture or a similar type of subsidiary organization. Doing so ensures each party is held accountable for their share in asset contribution, day-to-day operations, and profit distribution regarding the new business. Before moving any venture forwards, however, make sure to enlist the help of an experienced team of real estate lawyers who are capable of drafting an iron-clad contract agreement and competent enough to protect your best interests during any disputes that might arise. With decades of experience handling both residential and commercial real estate development projects, Goosmann Rose Colvard & Cramer, P.A. is Asheville’s premier real estate law firm for joint real estate ventures and organizations.
What Is A Joint Venture?
A joint venture is an informal type of business relationship in which two or more companies agree to share funds, resources, and skills to achieve a common project or goal. While joint ventures are not always contractual, real estate developers interested in forming an alliance must consider starting an independent but subsidiary legal entity to manage the joint venture, such as a Limited Liability Company (LLC) or corporation. Unlike a business partnership, however, joint ventures are designed for short-term projects, not ongoing business relationships.
When Should I Form A Joint Venture?
Business owners should consider forming a joint venture when lacking the resources necessary to complete a short-term project. For instance, residential real estate developers interested in undertaking a mixed development project may benefit from forming a joint venture with a commercial real estate developer. Similarly, domestic or national businesses can use a joint venture to access a company’s broader, international market. In each case, joint ventures allow companies to combine their resources so they can tackle projects that would have otherwise been difficult to do on their own.
The Joint Venture Process
To successfully form a joint venture, investors should enlist the help of an experienced real estate attorney to help them through the set-up process, which includes the following.
- Draft a nondisclosure agreement to prohibit the involved parties from disclosing or taking advantage of any intellectual property obtained through the other company.
- Write a letter of intent that outlines the preliminary purpose and conditions for the joint venture.
- Draft & sign a joint venture agreement which outlines the duties and obligations of each party regarding the joint venture.
- Obtain the necessary permits & licenses required to form the new business entity responsible for overseeing the joint venture.
Why You Need A Joint Venture Lawyer
A real estate attorney can help partner investors decide on the type of subsidiary legal entity that’s most appropriate for the joint business. After investors choose a business strategy, a lawyer can also help real estate developers draft and review the joint venture agreement to ensure it abides by the latest state, federal, and industry regulations. Additionally, even after a joint venture has successfully formed, real estate lawyers can help resolve disputes among partners while still safeguarding their client’s best interests. Our Asheville real estate law firm has experience assisting clients with all types of issues concerning real estate development organizations, including the following.
- Pre-formation Issues
- Tax Matters
- Antitrust Matters
- Deadlock Resolution
- Governing Law Selection
- Profits Allocation & Losses
- Cash Distribution Provisions
- Transfer Restrictions & Exit Strategies
- Financial Obligations & Capital Requirements
Joint Venture Lawyers In Asheville, NC
While joint ventures provide real estate developers with a medium to combine resources, players need to start every business relationship on the right path. More often than not, disputes among partners result from shoddy legal paperwork and a lack of proper mediation. Our Asheville real estate attorneys with Goosmann Rose Colvard & Cramer, P.A. can help clients draft a contract agreement that is specifically tailored to the needs of the client to avoid any complications down the road. Contact our Asheville law firm today for general inquiries regarding your next joint venture.