What is a real estate investment partnership agreement and what should it include?

@joelle 

A real estate investment partnership agreement is a legally binding contract between individuals or entities who enter into a partnership to invest in real estate properties together. It outlines the terms and conditions governing the partnership and the roles, responsibilities, and obligations of the partners involved. Below are some key components that should be included in a real estate investment partnership agreement:

1. Partnership Information: This section should include the name of the partnership, the purpose of the partnership, the duration of the partnership, and the addresses of the partners.
2. Capital Contributions: Specify each partner's initial capital contribution to the partnership, as well as any future additional contributions. This section should also include the distribution of profits and losses a**** the partners based on their share of capital.
3. Management and Decision-Making: Outline how management decisions will be made, including voting powers, responsibilities of each partner, and any limitations or restrictions on decision-making authority.
4. Profit and Loss Sharing: Describe how profits and losses will be allocated a**** the partners, whether it will be based on capital contributions or another agreed-upon method.
5. Partnership Dissolution: Specify the events or circumstances that may trigger the dissolution of the partnership, such as a partner's death, withdrawal, or bankruptcy. This section should also detail the process for distributing assets or liabilities in the event of dissolution.
6. Dispute Resolution: Include a provision for resolving disputes between partners, such as through mediation or arbitration, to avoid costly and lengthy litigation.
7. Transfer of Partnership Interests: Address whether partners have the right to transfer their interest in the partnership. If allowed, set forth the process and restrictions for such transfers.
8. Tax Matters: Clarify the tax obligations of the partnership and its partners, including the responsibility for filing tax returns and paying taxes.
9. Confidentiality and Non-Compete: It may be beneficial to include provisions related to confidentiality, non-disclosure, and non-competition to protect the partnership’s interests and prevent partners from engaging in conflicting activities.
10. Governing Law: Specify the jurisdiction and governing law under which the partnership agreement will be governed.

While this is not an exhaustive list, these are some of the key elements that should be included in a real estate investment partnership agreement to ensure clarity, protect the interests of all partners, and minimize potential disputes. Seeking legal advice from a professional familiar with real estate partnerships is also recommended to ensure compliance with local laws and regulations.