What Is a Real Estate Partnership Agreement?
First of all, an agreement is a document that identifies the written terms of an agreement between two or more parties. The purpose of this document is for each party to be aware of exactly what they are accountable for. In terms of a real estate partnership agreement, this is a much more specific document that formalizes the professional relationship between two real estate agencies, thus boosting each other's marketing communication strategies.
How to Make a Real Estate Partnership Agreement
How can one set up a real estate partnership effectively? Partnering on real estate deals require a goal that both agencies can agree upon, but it will also require the use of a well-written partnership agreement. Learn how to make an impressive, simple, standard agreement letter by going through our easy-to-follow instructions provided below.
1. Discuss terms with the other party
Businesses initiate a partnership because it helps them gain more profit especially if the professional relationship is successful. The number of businesses structuring a partnership has grown at a rate of 5.6% a year since 2007 and their net incomes have also grown by 2.5%. Again, this will only be possible if the terms of the agreement are discussed well with the other realty firms when creating real estate business structures and partnership agreements.
2. Outline the agreement document
Make the business collaboration between your real estate agency and other flow smoothly by ensuring that all terms are written on the agreement. By outlining the letter, you'll be able to distinguish which details are relevant to the business agreement and which ones are not. The outline of your partnership agreement should at least contain the nature of the work, the profit-sharing, and the start and end of the agreement.
3. Launch a word processor
You're very much free to use whatever document processor is convenient for you, just make sure that it allows you to write your letter freely. Open your preferred document processor and start a new project. If you have a letterhead for your real estate agency, feel free to add it to the letter. In terms of font, go with something that looks professional such as those in the Serif or San Serif family.
4. Write the details of the agreement
Using the document processing application, you can start writing the details of the agreement form starting with the title of the document, the necessary addresses and date, and the name of the recipient. Afterward, explain the purpose of the document in the first paragraph, this is to immediately inform the reader of your intention. Lastly, lay out the terms of the tasks to be performed and add the rest of the agreement's details.
5. Print the agreement and give one copy to the other party
After proofreading the content of the agreement and deeming it ready for printing, print copies of it and give one to the other party. If more than two real estate agencies are involved, be sure to give a copy to each. And just like any other legal agreement document, representatives of each party whose names are indicated on the partnership agreement should sign the document.