If you`re considering investing in real estate, it`s important to have a solid investment agreement in place. A real estate investment agreement is a legally binding contract that outlines the terms and conditions of the investment and can help protect both the investor and the property owner.
A good investment agreement should cover several key areas, including the terms of the investment, the amount of capital being invested, the expected return on investment, and the rights and responsibilities of both parties. Below is a sample real estate investment agreement that can serve as a starting point for your own agreement.
This Investment Agreement (the “Agreement”) is made and entered into on [Date] by and between [Investor Name] (the “Investor”) and [Property Owner Name] (the “Owner”).
The Investor agrees to provide an investment of [Amount] (the “Investment Amount”) to the Owner for the purpose of [Purpose of Investment]. The Investment Amount will be paid in full on or before [Date] and will be held in an escrow account until the terms of this Agreement are met.
2. Return on Investment
The Owner agrees to pay the Investor a return on investment (the “ROI”) of [Percentage]% per year for a period of [Length of Time]. The ROI will be paid [Monthly/Quarterly/Annually] and will be calculated based on the Investment Amount.
3. Rights and Responsibilities
The Investor has the right to inspect the property at any time and may request monthly financial reports from the Owner. The Owner agrees to maintain the property in good condition and to keep accurate financial records. The Owner may not sell, transfer, or encumber the property without the written consent of the Investor.
In the event that the Owner defaults on any of the terms of this Agreement, the Investor may terminate the Agreement and demand immediate repayment of the Investment Amount plus any accrued interest.
5. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the state of [State] and any disputes arising under this Agreement shall be resolved in the courts of [County].
6. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Investor Name] [Property Owner Name]
As you can see from this sample real estate investment agreement, having a well-defined contract can help protect both the investor and property owner. Before signing any investment agreement, it`s important to consult with a real estate attorney and ensure that all the terms of the contract are fair and reasonable. By doing so, you can help ensure a successful real estate investment.