Introduction
Joint ventures are increasingly popular in Nigerian real estate, especially for landowners who lack development funds. However, many fail due to poorly drafted agreements.
What Is a Joint Venture?
A joint venture involves a partnership where one party provides land and another provides capital or expertise, with profits shared.
Importance of Written Agreements
Verbal agreements are not enforceable. A written contract protects all parties involved.
Key Clauses to Include
Profit sharing, project timeline, exit clauses, and dispute resolution mechanisms are essential.
Risks of Poor Agreements
Poor documentation can lead to abandoned projects, disputes, and loss of land control.
Legal Safeguards
Always involve a property lawyer and ensure agreements are registered.
Conclusion
A joint venture should be treated as a business transaction, not a favor. Proper documentation is critical.
