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Equity Sharing Agreement (Real Estate)
"I need an Equity Sharing Agreement (Real Estate) for a commercial property in Manila, where three corporate investors will share ownership (40-30-30 split) with one party managing the property, including provisions for quarterly profit distribution and annual valuation updates."
1. Parties: Identification and details of all parties entering into the equity sharing arrangement
2. Background: Context of the agreement, including the property details and parties' intention to enter into an equity sharing arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Details: Detailed description of the subject property, including its legal description and current status
5. Equity Contributions: Specification of each party's equity contribution, whether monetary or in-kind
6. Ownership Structure: Definition of ownership percentages and how they are calculated/adjusted
7. Management and Control: Rules for property management, decision-making processes, and voting rights
8. Income and Expenses: Distribution of rental income, handling of operating expenses, and capital expenditures
9. Transfer Restrictions: Limitations on selling or transferring ownership interests
10. Exit Mechanisms: Procedures for parties to exit the agreement, including buy-out provisions
11. Default and Remedies: Consequences of default and available remedies
12. Term and Termination: Duration of the agreement and circumstances for termination
13. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction
14. Dispute Resolution: Procedures for resolving disputes between parties
15. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability
1. Property Development Plans: Include when the agreement involves future development or renovation of the property
2. Financing Arrangements: Include when parties are obtaining external financing or loans
3. Special Purpose Vehicle: Include when a separate entity is created to hold the property
4. Property Management Agreement: Include when a third-party property manager will be engaged
5. Right of First Refusal: Include when parties want pre-emptive rights to purchase others' shares
6. Insurance Requirements: Include detailed insurance provisions when significant coverage is required
7. Environmental Matters: Include when property has potential environmental concerns or requirements
8. Tenant Relations: Include when property is or will be leased to tenants
1. Schedule A - Property Description: Detailed legal description of the property, including title information and encumbrances
2. Schedule B - Initial Capital Contributions: Detailed breakdown of each party's initial capital contributions
3. Schedule C - Ownership Percentages: Current ownership percentages and any adjustment mechanisms
4. Schedule D - Property Valuation: Initial property valuation and methodology for future valuations
5. Schedule E - Management Procedures: Detailed procedures for property management and decision-making
6. Schedule F - Budget and Financial Projections: Initial operating budget and financial projections
7. Schedule G - Permitted Encumbrances: List of approved existing or future encumbrances on the property
8. Appendix 1 - Required Forms: Standard forms for notices, capital calls, and transfer requests
9. Appendix 2 - Compliance Documents: Copies of required permits, certificates, and compliance documents
Authors
Real Estate
Property Development
Investment Management
Construction
Property Management
Financial Services
Hospitality
Commercial Real Estate
Residential Real Estate
Real Estate Investment Trusts (REITs)
Legal
Real Estate
Investment
Finance
Compliance
Business Development
Asset Management
Property Management
Risk Management
Corporate Development
Real Estate Attorney
Property Developer
Investment Manager
Real Estate Broker
Property Manager
Financial Analyst
Legal Counsel
Business Development Manager
Asset Manager
Investment Advisor
Real Estate Portfolio Manager
Compliance Officer
Chief Financial Officer
Real Estate Investment Director
Project Manager
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