Key takeaways
- Agree each party's share of the finished building in writing before work starts.
- Make approvals, timelines and responsibilities explicit.
- Be wary of anyone promising guaranteed returns.
In a landowner joint venture, the landowner contributes the plot and the developer contributes design, approvals, construction and sales. Instead of a sale price, the landowner receives an agreed share of the finished building or its proceeds.
Questions to settle in writing
- What share of the finished units or proceeds does each party receive?
- Who pays for design, approvals and construction?
- What happens if approvals are delayed or refused?
- What is the construction timeline, and what if it slips?
- How are sales managed and money accounted for?
- How are disputes resolved?
Read about joint ventures with R&K or propose your plot.