Land Partnership Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Land Partnership Agreement

"I need a Land Partnership Agreement for a joint venture between two Saudi real estate companies to develop a 10,000 square meter residential complex in Riyadh, with an expected project commencement date of March 2025."

Document background

The Land Partnership Agreement serves as a crucial legal instrument in Saudi Arabia for parties seeking to establish joint ownership or development arrangements for land assets. This document is essential when multiple parties wish to pool resources, expertise, or capital for land-based projects while maintaining clear rights and responsibilities under Saudi law. The agreement must carefully navigate both Sharia law requirements and Saudi regulations, particularly regarding land ownership, foreign investment restrictions, and partnership structures. It typically includes detailed provisions for capital contributions, profit-sharing, management rights, development plans, and exit mechanisms, while ensuring compliance with local municipality regulations and zoning requirements. The document is particularly relevant for real estate development projects, investment ventures, and commercial land utilization schemes within the Kingdom.

Suggested Sections

1. Parties: Identification of all partners, including full legal names, addresses, and registration details for corporate entities

2. Background: Context of the partnership formation, purpose, and brief description of the land asset

3. Definitions: Key terms used throughout the agreement, including technical, legal, and partnership-specific terminology

4. Partnership Structure: Legal form of partnership, ownership percentages, and capital contributions

5. Land Details: Comprehensive description of the land, including title details, boundaries, and current status

6. Capital Contributions: Detailed breakdown of each partner's contributions, whether monetary, land, or other assets

7. Profit and Loss Sharing: Distribution mechanism for profits and losses, including calculation methods and timing

8. Management and Control: Decision-making processes, voting rights, and management responsibilities

9. Land Development and Use: Agreed purposes for land use, development plans, and restrictions

10. Transfer Restrictions: Limitations on transfer of partnership interests and land ownership

11. Term and Termination: Duration of partnership and circumstances for termination

12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

13. Notices: Communication procedures between partners and formal notice requirements

14. Governing Law: Confirmation of Saudi law application and Sharia compliance

Optional Sections

1. Foreign Ownership Provisions: Required when any partner is non-Saudi, detailing compliance with foreign ownership restrictions

2. Development Financing: Include when the partnership plans to seek external financing for land development

3. Environmental Compliance: Necessary when land development involves environmental considerations

4. Zakat and Tax: Include detailed tax provisions when partners have different tax statuses

5. Exit Strategy: Optional detailed procedures for partner exit, including valuation methods

6. Force Majeure: Detailed provisions for unforeseen circumstances affecting the partnership

7. Insurance: Include when specific insurance requirements are needed for the land or development

8. Employment: Required when the partnership will directly employ staff

Suggested Schedules

1. Land Title Documents: Certified copies of land ownership documents and registration certificates

2. Partner Contributions Schedule: Detailed breakdown of each partner's contributions with valuations

3. Development Plan: Detailed plans for land development, including timelines and milestones

4. Management Structure: Organizational chart and detailed management procedures

5. Land Survey and Maps: Technical surveys, boundary maps, and land specifications

6. Required Permits: Copies of obtained permits and list of pending permits

7. Valuation Reports: Independent valuation reports for land and other contributed assets

8. Financial Projections: Business plan and financial forecasts for the partnership

9. Partner Resolutions: Corporate resolutions authorizing partnership participation

10. Municipality Approvals: Relevant municipal approvals and zoning certificates

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Real Estate

Construction

Property Development

Infrastructure

Commercial Property

Residential Development

Industrial Development

Agriculture

Hospitality

Urban Planning

Islamic Finance

Investment Management

Relevant Teams

Legal

Real Estate

Investment

Business Development

Compliance

Finance

Project Management

Risk Management

Property Management

Construction

Corporate Development

Strategic Planning

Relevant Roles

Real Estate Director

Legal Counsel

Investment Manager

Property Development Manager

Chief Executive Officer

Chief Financial Officer

Land Acquisition Manager

Business Development Director

Compliance Officer

Project Manager

Urban Planning Director

Partnership Manager

Real Estate Investment Analyst

Construction Manager

Risk Management Officer

Islamic Finance Advisor

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