CHECKLIST POSSIBLE JOINT VENTURE - DEVELOPMENT SITES Notes and Points 1.
Status of existing agreement - that is, In whose name are the agreements? How is title(s) to be owned.
2.
Structure of joint venture - JV company or by unincorporated joint venture between two companies, either principal companies or 100% wholly owned subsidiaries - whether or not these companies form a partnership is debatable.
3.
Deposit and feasibility fees, eg architect, legal etc to get show on road.
4.
Ongoing funding: (i) (ii) (iii) (iv) (v)
Outgoings. Equity input. Debt (question also how to fund debt while project ongoing). Taxation. Who to arrange debt facilities.
5.
Style of development - staged development or not - timeframe - budgets - plans etc.
6.
Manner of sales - half each or half share of whole.
7.
Voting and management rights: (i) (ii) (iii) (iv) (v) (vi)
8.
Profit sharing: (i) (ii) (iii)
9.
Expenses. Debt reduction. Surpluses.
Possible structure variations: (i) (ii) (iii)
10.
100% agreement? Communication. Access to records. Authority to bind - subcontracts etc. Alterations. Confidentiality.
Put option (that is requirement by one party for other to buy it out) or assignment of interest - are these allowable? Introduction new parties to venture, eg funding partner. Failure by one party to meet obligations - does this terminate agreement or trigger buy out provisions?
Professional support, eg architects, surveyors, project managers, construction, legal, accounting and audit.