Real Estate Profit Sharing Agreement Template for Indonesia

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Key Requirements PROMPT example:

Real Estate Profit Sharing Agreement

"I need a Real Estate Profit Sharing Agreement for a mixed-use commercial building in Jakarta, where my company owns the property and will share profits 70-30 with an operating partner who will manage the retail and office spaces."

Document background
The Real Estate Profit Sharing Agreement is essential for structuring property investment partnerships in Indonesia's dynamic real estate market. This document is typically used when multiple parties wish to collaborate in a real estate venture while clearly defining their respective rights, obligations, and profit entitlements. It addresses the complexities of Indonesian property law, including considerations under the Basic Agrarian Law (UUPA), investment regulations, and tax requirements. The agreement is particularly relevant for joint ventures, property development projects, and investment partnerships where parties contribute different resources (such as land, capital, or expertise) and need a clear framework for sharing the resulting profits. It includes comprehensive provisions for property management, financial reporting, profit calculation and distribution, dispute resolution, and regulatory compliance specific to the Indonesian legal context.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration numbers for companies

2. Background: Context of the agreement, including property ownership status and parties' intention to enter into profit-sharing arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Net Profit', 'Gross Revenue', etc.

4. Property Details: Detailed description of the real estate property subject to the profit-sharing arrangement, including legal title and registration details

5. Profit Sharing Structure: Detailed breakdown of how profits will be calculated and distributed between parties, including percentages and payment periods

6. Rights and Obligations: Specific responsibilities and rights of each party regarding the property and profit-sharing arrangement

7. Financial Provisions: Details of financial arrangements, including expense allocation, accounting requirements, and payment mechanisms

8. Property Management: Arrangements for day-to-day management of the property, including maintenance and operational decisions

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Representations and Warranties: Legal assurances and declarations made by each party

11. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law clauses

12. Miscellaneous: Standard legal provisions including notices, amendments, and severability

Optional Sections

1. Development Plans: Include when the property will undergo development or renovation during the agreement period

2. Marketing and Promotion: Include when parties agree to specific marketing arrangements for the property

3. Insurance: Include when specific insurance requirements need to be detailed beyond standard property insurance

4. Environmental Compliance: Include when the property has specific environmental considerations or requirements

5. Third Party Management: Include when a professional property manager will be appointed

6. Exit Strategy: Include when parties want to specify conditions for selling the property or transferring interests

7. Force Majeure: Include when parties want specific provisions for unforeseen circumstances affecting the property or profit-sharing arrangement

Suggested Schedules

1. Property Details Schedule: Detailed legal description of the property, including certificates, permits, and land rights documentation

2. Profit Calculation Schedule: Detailed methodology for calculating profits, including allowable expenses and accounting procedures

3. Financial Reports Template: Template for regular financial reporting and profit distribution calculations

4. Management Procedures: Detailed procedures for property management and decision-making processes

5. Insurance Requirements: Specific insurance requirements and minimum coverage levels

6. Maintenance Schedule: Schedule of regular maintenance and responsibilities

7. Required Permits: List of all required permits and licenses for property operation

8. Party Representatives: List of authorized representatives for each party and their contact details

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Development

Commercial Property

Residential Property

Hospitality

Retail

Industrial

Mixed-Use Development

Property Investment

Construction

Relevant Teams

Legal

Real Estate

Investment

Finance

Operations

Compliance

Asset Management

Development

Property Management

Risk Management

Relevant Roles

Real Estate Director

Property Manager

Investment Manager

Legal Counsel

Chief Financial Officer

Asset Manager

Development Director

Investment Analyst

Property Operations Manager

Compliance Officer

Real Estate Partner

Investment Director

Portfolio Manager

Real Estate Consultant

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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