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Equity Sharing Agreement (Real Estate) Template for Philippines

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Key Requirements PROMPT example:

Equity Sharing Agreement (Real Estate)

"I need an Equity Sharing Agreement (Real Estate) for a commercial property in Manila, where three corporate investors will share ownership (40-30-30 split) with one party managing the property, including provisions for quarterly profit distribution and annual valuation updates."

Document background
The Equity Sharing Agreement (Real Estate) is a crucial document used in Philippine real estate transactions where multiple parties wish to share ownership of property assets. This agreement type has become increasingly important in the Philippine market as property investments grow more sophisticated and investors seek to pool resources and share risks. The document addresses key aspects required under Philippine law, including property registration requirements, tax implications, and compliance with the Civil Code of the Philippines. It is particularly valuable for joint property investments, development projects, and real estate portfolio diversification, providing a clear framework for capital contributions, profit distribution, property management, and exit strategies. The agreement must be structured to comply with local property laws while protecting all parties' interests and facilitating efficient property management and decision-making.
Suggested Sections

1. Parties: Identification and details of all parties entering into the equity sharing arrangement

2. Background: Context of the agreement, including the property details and parties' intention to enter into an equity sharing arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Detailed description of the subject property, including its legal description and current status

5. Equity Contributions: Specification of each party's equity contribution, whether monetary or in-kind

6. Ownership Structure: Definition of ownership percentages and how they are calculated/adjusted

7. Management and Control: Rules for property management, decision-making processes, and voting rights

8. Income and Expenses: Distribution of rental income, handling of operating expenses, and capital expenditures

9. Transfer Restrictions: Limitations on selling or transferring ownership interests

10. Exit Mechanisms: Procedures for parties to exit the agreement, including buy-out provisions

11. Default and Remedies: Consequences of default and available remedies

12. Term and Termination: Duration of the agreement and circumstances for termination

13. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction

14. Dispute Resolution: Procedures for resolving disputes between parties

15. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

Optional Sections

1. Property Development Plans: Include when the agreement involves future development or renovation of the property

2. Financing Arrangements: Include when parties are obtaining external financing or loans

3. Special Purpose Vehicle: Include when a separate entity is created to hold the property

4. Property Management Agreement: Include when a third-party property manager will be engaged

5. Right of First Refusal: Include when parties want pre-emptive rights to purchase others' shares

6. Insurance Requirements: Include detailed insurance provisions when significant coverage is required

7. Environmental Matters: Include when property has potential environmental concerns or requirements

8. Tenant Relations: Include when property is or will be leased to tenants

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the property, including title information and encumbrances

2. Schedule B - Initial Capital Contributions: Detailed breakdown of each party's initial capital contributions

3. Schedule C - Ownership Percentages: Current ownership percentages and any adjustment mechanisms

4. Schedule D - Property Valuation: Initial property valuation and methodology for future valuations

5. Schedule E - Management Procedures: Detailed procedures for property management and decision-making

6. Schedule F - Budget and Financial Projections: Initial operating budget and financial projections

7. Schedule G - Permitted Encumbrances: List of approved existing or future encumbrances on the property

8. Appendix 1 - Required Forms: Standard forms for notices, capital calls, and transfer requests

9. Appendix 2 - Compliance Documents: Copies of required permits, certificates, and compliance documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Investment Management

Construction

Property Management

Financial Services

Hospitality

Commercial Real Estate

Residential Real Estate

Real Estate Investment Trusts (REITs)

Relevant Teams

Legal

Real Estate

Investment

Finance

Compliance

Business Development

Asset Management

Property Management

Risk Management

Corporate Development

Relevant Roles

Real Estate Attorney

Property Developer

Investment Manager

Real Estate Broker

Property Manager

Financial Analyst

Legal Counsel

Business Development Manager

Asset Manager

Investment Advisor

Real Estate Portfolio Manager

Compliance Officer

Chief Financial Officer

Real Estate Investment Director

Project Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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