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Real Estate Partnership Agreement for India

Real Estate Partnership Agreement Template for India

A comprehensive legal document governed by Indian law that establishes and regulates a partnership arrangement specifically for real estate ventures. This agreement combines elements of the Indian Partnership Act, 1932, with real estate-specific provisions under RERA 2016 and other relevant property laws. It details partner responsibilities, capital contributions, profit-sharing arrangements, property management protocols, and operational procedures while ensuring compliance with Indian real estate regulations and partnership laws. The document provides a robust framework for partners to collaborate in real estate investments, development, and management activities.

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What is a Real Estate Partnership Agreement?

The Real Estate Partnership Agreement serves as a foundational document for parties seeking to collaborate in real estate ventures within India. It is essential when two or more parties wish to pool resources, expertise, and capital for real estate investments, development, or management activities. The agreement must comply with the Indian Partnership Act, 1932, Real Estate (Regulation and Development) Act, 2016, and various state-specific real estate laws. It typically includes detailed provisions for capital contributions, profit sharing, property management, decision-making processes, and exit mechanisms. This document is particularly crucial in India's complex real estate market, where clear partnership terms and compliance with local regulations are essential for successful real estate ventures.

What sections should be included in a Real Estate Partnership Agreement?

1. Parties: Details of all partners entering into the agreement, including full legal names, addresses, and registration details if any partners are entities

2. Background: Context of the partnership formation, including the purpose and objectives of the real estate partnership

3. Definitions: Definitions of key terms used throughout the agreement, including property-related and partnership-specific terminology

4. Partnership Structure: Legal structure of the partnership, including type of partnership and registration details

5. Capital Contributions: Details of initial and ongoing capital contributions from each partner, including both monetary and property contributions

6. Profit and Loss Sharing: Formula and mechanisms for sharing profits, losses, and liabilities among partners

7. Management and Control: Management structure, decision-making processes, and voting rights of partners

8. Property Management: Procedures for managing real estate assets, including maintenance, leasing, and development

9. Banking and Finance: Banking arrangements, accounting procedures, and financial management protocols

10. Transfer of Interest: Rules governing the transfer of partnership interests and property holdings

11. Dispute Resolution: Procedures for resolving disputes between partners, including mediation and arbitration provisions

12. Term and Termination: Duration of the partnership and conditions for termination or dissolution

13. Governing Law: Applicable laws and jurisdiction governing the agreement

What sections are optional to include in a Real Estate Partnership Agreement?

1. Development Projects: Include when the partnership plans to undertake property development activities, detailing project management and execution procedures

2. Third-Party Investments: Include when the partnership structure allows for external investors or future capital raising

3. Intellectual Property: Include when the partnership owns or develops branded properties or unique property management systems

4. Environmental Compliance: Include for partnerships dealing with large-scale developments or environmentally sensitive properties

5. Employment Matters: Include when the partnership will directly employ staff for property management

6. Insurance: Include detailed insurance requirements when dealing with high-value properties or multiple properties

7. Non-Compete Provisions: Include when partners have other real estate interests that could compete with the partnership

8. Foreign Investment Compliance: Include when any partner is a foreign entity or individual

What schedules should be included in a Real Estate Partnership Agreement?

1. Schedule A - Property Details: Comprehensive list and details of all properties owned or managed by the partnership

2. Schedule B - Capital Contributions: Detailed breakdown of each partner's initial and committed capital contributions

3. Schedule C - Profit Sharing Ratios: Detailed calculations and scenarios for profit and loss distribution

4. Schedule D - Management Procedures: Detailed operational procedures and management protocols

5. Schedule E - Valuation Methodology: Agreed methods for valuing partnership assets and interests

6. Appendix 1 - Partner KYC Documents: Copies of identity and address proofs of all partners

7. Appendix 2 - Property Documents: Copies of property titles, deeds, and relevant permits

8. Appendix 3 - Partnership Registration: Partnership registration certificates and regulatory compliance documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions















































Clauses














































Relevant Industries

Real Estate

Property Development

Construction

Property Management

Real Estate Investment

Commercial Property

Residential Property

Industrial Property

Urban Development

Infrastructure

Relevant Teams

Legal

Real Estate

Property Management

Investment

Operations

Compliance

Business Development

Project Management

Asset Management

Risk Management

Relevant Roles

Real Estate Developer

Property Manager

Investment Director

Legal Counsel

Real Estate Partner

Development Manager

Asset Manager

Construction Manager

Real Estate Consultant

Compliance Officer

Business Development Manager

Project Director

Investment Analyst

Operations Manager

Managing Partner

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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