In the absence of a joint venture agreement, the law may consider your cooperation to be effectively a legally recognized partnership and apply standard state laws for tax and liability purposes. In view of the above, it is not possible to conclude a good joint venture agreement, which takes due account of the interests and concerns of the parties. A good joint venture agreement should take into account at least the following factors, in particular:- 1. Selection of necessary advisors – It is desirable that the parties agree on the relevant advisors involved in the projects. These consultants should include the project architect, proponents, volume evaluators, statistician, project auditor, project physioplander, project evaluators, project accountant and project advocate. The party that bears, inter alia, the advisers` fees and the contractual terms of each adviser should also be agreed. 2. Evaluation by the Quantity Surveyor and Valuer – the incentive rate is usually determined in the reports of these two consultants. Normally, the market value of the land is what is allocated by the landowner as capital. The project volume indicator should then attempt to quantify the total cost of the proposed project and the variables are ready. This is an extremely important area, as it establishes a basis for the calculation of the profit-benefit formula to be used.
3. Transfer of land to development company – If ownership of the land is in the name of an individual, it is preferable that it be transferred to a development company/special purpose entity or joint venture company. This is the vehicle with which the project is implemented. Initially, such a company should be created only with the landowner and his family members as the first shareholders and directors. The real estate developer should only be involved in the business after investing a little money in the project. In Legal Communication No. 92 0f 2007 of 14 June 2007 from Hon. Amos Kimunya (then Minister of Finance), the lawyer should take into account the following: – LEGAL NOTICE NO. 1.
92 OF 2007 THE STAMP TAX ACT (Cap. 480) EXEMPTION IN THE EXERCISE OF THE POWERS CONFERRED BY SECTION 106 OF THE STAMP DUTY ACT, the Minister of Finance orders that any deed relating to the transfer of family property to a limited liability company, the shares of which are wholly owned by the family, is excluded from the provisions of Law 4. Change of permission for use and development – The parties (most often developers) should ensure that the change of user of the property is handled by the competent local authority and the Landesamt. In addition, the necessary environmental and development authorisations and authorisations should be processed. The type of permit or permit to be obtained depends on the nature of the development that the parties must implement. 5. The types of project and the quality of the finishes – both parties are equally interested in the nature of the project to be carried out in the field, they should preferably agree on this project jointly with the help of the project architect. . . .