If you have been working in real estate for some time, the chances are extremely high that you have entered into a joint venture agreement at least once. Immediately after the recession, joint venture agreements became furious. Especially because lenders have started to impose credit-to-value ratios of up to 70%. Few real estate investors are willing to put so much at risk, anyway not alone! But maybe you don`t know what a joint venture agreement is? Whether you do it or not, this article can teach you something new. Let`s start with that. Let`s start by defining what a joint venture is. Investopedia.com: „A joint venture (JV) is a trade agreement in which two or more parties agree to pool their resources for the fulfillment of a specific mission. It may be a new project or some other business activity. In a joint venture, each participant is responsible for the profits, losses and associated costs. However, the entity is a separate entity, separate and separate from the other business interests of the participants. The kompleoder can be either a legal title or a description for a manager who has many of the same rights and obligations. In essence, a complemanent is the organizer, who brings together the real estate investment and is responsible for the overall success of the project.
Typical tasks would be the insinuation of a property, the coordination of debts, the signing of personal guarantees in case of need, the collection of offers for renovation or construction work, the calculation of returns on equity and the creation of capital for the execution of the plan. The partners of the joint venture can distribute the profits on the basis of an agreed percentage or there may be a preferred capital position. It goes without saying that all joint venture agreements should include a dispute settlement clause. In the absence of such provisions, the joint venture is threatened, as one of the members may request the judicial liquidation of the joint venture, as it is not possible for the partners to continue the activity of the joint venture in accordance with the agreement. See ex.B. Del. Code Ann. tit. 6, 17-802, 18-802.
Dispute resolution can and should be an integral part of the operational structure of the joint venture. The attentive practitioner should not view dispute resolution as a single arbitration decision. A more informal dispute resolution process should be seriously considered as the company strives to pursue its objectives quickly, as opposed to a more formal dispute resolution regime as soon as the joint venture is dissolved or dissolved.
