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Real Estate Profit Sharing Agreement
"I need a Real Estate Profit Sharing Agreement for a joint venture between my development company and three private investors, with a 60-40 profit split for a commercial office building in Kuala Lumpur, with the arrangement to commence in March 2025."
1. Parties: Identification of all parties involved in the profit-sharing agreement, including their full legal names, registration numbers (if companies), and addresses
2. Background: Context of the agreement, including the property details and the parties' intention to enter into a profit-sharing arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Profit', 'Property', 'Investment Period', etc.
4. Property Details: Comprehensive description of the subject property, including legal title details and current market value
5. Investment Structure: Details of each party's capital contribution, investment ratio, and form of investment (cash, property, or services)
6. Profit Sharing Mechanism: Formula and methodology for calculating and distributing profits, including timing and payment methods
7. Management and Control: Rights and responsibilities of each party in managing the property and making decisions
8. Expenses and Costs: Allocation of operating expenses, maintenance costs, and other related expenditures
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Representations and Warranties: Standard declarations by all parties regarding their capacity and authority to enter into the agreement
11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for dispute resolution
1. Development Plans: Required when the property will undergo development or major renovations, outlining the development timeline and responsibilities
2. Financing Arrangements: Needed when external financing is involved, detailing loan terms and parties' obligations
3. Property Management: Required when a third-party property manager will be appointed, outlining their duties and compensation
4. Exit Strategy: Optional section detailing the process for parties to exit the arrangement or sell their interests
5. Insurance Requirements: Detailed insurance obligations when specific coverage types are required
6. Environmental Matters: Required for properties with environmental concerns or compliance requirements
7. Marketing and Leasing: Needed when the agreement includes provisions for marketing and leasing the property
8. Islamic Finance Compliance: Required when the agreement needs to comply with Shariah principles
1. Schedule 1 - Property Details: Detailed legal description of the property, including title details, lot number, and location maps
2. Schedule 2 - Investment Contributions: Detailed breakdown of each party's investment contributions and valuations
3. Schedule 3 - Profit Calculation Formula: Detailed methodology and examples of profit calculations
4. Schedule 4 - Management Procedures: Specific procedures for property management and decision-making
5. Schedule 5 - Valuation Methodology: Agreed methods for property valuation during the term and upon termination
6. Appendix A - Required Approvals: List of necessary governmental and regulatory approvals
7. Appendix B - Property Condition Report: Initial condition assessment of the property
8. Appendix C - Financial Projections: Expected returns and cash flow projections
Authors
Real Estate
Property Development
Commercial Property
Residential Property
Industrial Property
Retail Property
Hospitality
Mixed-use Development
Islamic Finance
Property Investment
Legal
Real Estate
Finance
Investment
Risk Management
Compliance
Property Management
Development
Asset Management
Islamic Finance
Real Estate Director
Property Development Manager
Investment Manager
Legal Counsel
Finance Director
Asset Manager
Property Manager
Investment Analyst
Risk Manager
Compliance Officer
Chief Investment Officer
Development Director
Joint Venture Manager
Islamic Finance Specialist
Real Estate Transaction Manager
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