Document background
The Real Estate Development Joint Venture Term Sheet is a crucial preliminary document used in Canadian real estate development projects when two or more parties intend to collaborate on a significant development venture. It is typically prepared after initial discussions but before detailed due diligence and final documentation, serving as a roadmap for the transaction. This document outlines fundamental business terms such as ownership structure, capital commitments, profit sharing mechanisms, and management responsibilities, while maintaining flexibility for future negotiation. While mostly non-binding, it often includes certain binding provisions such as confidentiality and exclusivity. The term sheet is particularly important in complex development projects where parties need to establish clear understanding of their roles, responsibilities, and economic interests before investing significant time and resources in detailed documentation and due diligence.
