Sample Joint Venture Agreement between Landowner and Developer for NRI

A joint venture (JV) is an agreement between two or more affiliations to share the risks and rewards of an investment. This is typically a one-time agreement for short-term initiatives. Long-term, the developer will assist the landowner in maintaining their project and establishing a community under their control. It's not just a one-time buy-and-sell agreement.
The most usual scenarios for a JV agreement in property development are:
1. Landowner and Developer - one party donates the land, while the other handles the development. When the developed lots are sold, it is typical for the developer to pay the development costs and the parties to split the proceeds.
2. Two Developers - the two parties jointly purchase the property and carry out the development, usually sharing costs and responsibilities. After the developed lots are sold, the parties will split the proceeds in accordance to the development costs they paid along the way.
3. Investor and Developer: The investor pays for the land and covers the development costs, while the developer completes the work. The developer can be paid a fixed amount, a percentage of the sale proceeds, or a combination of the two, with a development management fee paid while the project is being completed and afterwards a piece of the sale proceeds shared.


0:00 What is it?
1:20 Scenarios
3:05 Considerations while making the agreement
5:38 Drafting a JV Agreement
9:43 Questions answered in the agreement