Legal Question in Real Estate Law in California

Re: Real Estate Agreement

Get yourself a self-help law book by Nolo Press or any of several other publishers on how to form and operate partnerships in California. Read it carefully. Keep in mind that partnership agreements do not have to be in writing to be enforceable, but they SHOULD be. Books like these often have draft or sample partnership agreements. Use them carefully, making modifications as need be to suit the particular circumstances of your deal.

An attorney-drafted agreement would be better, of course; if you are spending hundreds of thousands of dollars on real property, then the $1,000 or so it would cost for a properly-drafted agreement is peanuts by comparison. As the engine mechanics ads say, you can pay us (the lawyers) now, or you can pay us later.

Re: Real Estate Agreement

A contract. There is no standard "form."

Re: Real Estate Agreement

You either want a contract, partnership agreement or form a corporation or LLC (limited liability company).

You both would probably be better served by paying for a consultation with an attorney NOW rather than going on the cheap and leave open the possibilities of what can happen later without getting advice.

Re: Real Estate Agreement

When you mention sharing profits, you are usually talking about a partnership. A formal contract is not necessary to form a partnership, but instead, partnerships are found where there is sharing of profits, and presumably losses.

With that in mind, you should get a formal agreement in writing, to protect yourself in the event that there are disputes later on. For example, what is the scope of the partnership? Is it just this property, or is it several properties? What if you invest money you make from this venture; does your "partner" have a right to that money?

These are things that you should address now with a formal partnership agreement.