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Profit Sharing Agreement

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					PROFIT SHARING AGREEMENT

         This Profit Sharing Agreement (“Agreement”) is entered into between __________________
         [Provide name of person or business that will be hiring the real estate agent to improve
         the property] (“Profit Sharer”) and _____________________ (“Worker”) effective
         __________________, 201_____ [Enter effective date of agreement].

         Profit Sharer has or will acquire ownership title in its/his/her/their name, without Worker's
         name on title, to the property located at ____________________________________ (the
         “Property”).

         Profit Sharer and Worker will work together to improve the Property (the “Project”) as
         follows: Profit Sharer will provide all monies
                                                    of realresponsible for aincur all debts necessary that
                                                              estate solely day-to-day a project
This is an agreement between an owner willnecessary and and theworker fordetails
         for completion of the Project, and Worker       be
         necessary value of the real estate. The owner of the property agrees to provide all
will improve the to completethe Project. When the Profit Sharer and Worker complete the Project,
         the Property to be listed at the project while the sell quickly with any be
money necessarywillcomplete market price, with intent to worker agrees to priceresponsible for
         reductions agreed to by both. In exchange for Worker providing the day-to-day supervision
                                              project. In return for the worker’s management of
the day-to-day management of the that Worker shall be paid fifty percent (50%) of any
         of the Project, Profit Sharer agrees
         positive profit achieved receive of the Property. The Profit shall be calculated by gained
the project, the worker will in the sale fifty percent (50%) of any positive profitadding in the
         all property that can be complete the Project to the purchase agreement
sale of themonetary costs necessary toattributed to the project. Thisprice and then is ideal for
         subtracting this amount from the final sales price of the Property. Profit Sharer shall give
property owners or property management companies that want to share Profitprofits
         written instructions to escrow to pay an amount equal to fifty percent (50%) of the
                                                                                              the to
          by a directly out of project on their property.
realizedWorkerconstructionthe Property sale escrow. [Instruction: Parties may use this 50%
         figure, or, may instead increase or decrease this percentage, as mutually agreed-upon.]

         Also, Worker will act as the real estate broker of record for all Property and Project related
         real estate transactions and receive as compensation all appropriate brokerage commissions.
         This includes one half the listing broker’s commission on the Property purchase (typically
         3% paid by the seller) and 3% listing commission on the Property sale. [Instruction:
         Parties may use this % figure, or, may instead increase or decrease this percentage, as
         mutually agreed-upon.]

         Should Profit Sharer sell or transfer the Property for any reason prior to the completion of the
         Project, Worker shall be entitled to payment for his or her or its services. Such payment shall
         be determined based on the number of months of the Project at a rate of five thousand dollars
         per month, prorated to the nearest day. In addition if the Property is sold or transferred prior
         to completion of the Project for an amount that results in a positive profit, then the profit
         shall be divided equally between the parties as set forth above. [Instruction: Parties may
         use this $5,000 figure, or, may instead increase or decrease this amount, as mutually
         agreed-upon.]

         Should Profit Sharer not aggressively try to sell the Property, or for any reason not sell the
         Property by ninety (90) days after completion of the Project, Profit Sharer agrees to borrow
        against the Property and pay as soon as possible to Worker 50% of the Profit calculated from
                                PROFIT SHARING AGREEMENT

  This Profit Sharing Agreement (“Agreement”) is entered into between __________________
  [Provide name of person or business that will be hiring the real estate agent to improve
  the property] (“Profit Sharer”) and _____________________ (“Worker”) effective
  __________________, 201_____ [Enter effective date of agreement].

  Profit Sharer has or will acquire ownership title in its/his/her/their name, without Worker's
  name on title, to the property located at ____________________________________ (the
  “Property”).

  Profit Sharer and Worker will work together to improve the Property (the “Project”) as
  follows: Profit Sharer will provide all monies necessary and solely incur all debts necessary
  for completion of the Project, and Worker will be responsible for the day-to-day details
  necessary to complete the Project. When the Profit Sharer and Worker complete the Project,
  the Property will be listed at market price, with intent to sell quickly with any price
  reductions agreed to by both. In exchange for Worker providing the day-to-day supervision
  of the Project, Profit Sharer agrees that Worker shall be paid fifty percent (50%) of any
  positive profit achieved in the sale of the Property. The Profit shall be calculated by adding
  all monetary costs necessary to complete the Project to the purchase price and then
  subtracting this amount from the final sales price of the Property. Profit Sharer shall give
  written instructions to escrow to pay an amount equal to fifty percent (50%) of the Profit to
  Worker directly out of the Property sale escrow. [Instruction: Parties may use this 50%
  figure, or, may instead increase or decrease this percentage, as mutually agreed-upon.]

  Also, Worker will act as the real estate broker of record for all Property and Project related
  real estate transactions and receive as compensation all appropriate brokerage commissions.
  This includes one half the listing broker’s commission on the Property purchase (typically
  3% paid by the seller) and 3% listing commission on the Property sale. [Instruction:
  Parties may use this % figure, or, may instead increase or decrease this percentage, as
  mutually agreed-upon.]

  Should Profit Sharer sell or transfer the Property for any reason prior to the completion of the
  Project, Worker shall be entitled to payment for his or her or its services. Such payment shall
  be determined based on the number of months of the Project at a rate of five thousand dollars
  per month, prorated to the nearest day. In addition if the Property is sold or transferred prior
  to completion of the Project for an amount that results in a positive profit, then the profit
  shall be divided equally between the parties as set forth above. [Instruction: Parties may
  use this $5,000 figure, or, may instead increase or decrease this amount, as mutually
  agreed-upon.]

  Should Profit Sharer not aggressively try to sell the Property, or for any reason not sell the
  Property by ninety (90) days after completion of the Project, Profit Sharer agrees to borrow
  against the Property and pay as soon as possible to Worker 50% of the Profit calculated from
  as if the Property had been sold for the market value at the time of ninety days after the



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  Project completion, and also pay Worker five thousand dollars per month starting from
  ninety days after project completion. [Instruction: Parties may use these figures, or, may
  instead increase or decrease this percentage and fee, as mutually agreed-upon.]

  The rights and obligations of this Agreement may not be assigned or delegated by either
  party without the prior written consent of the other party, which consent shall not be
  unreasonably withheld; provided that the parties shall be allowed to engage subcontractors to
  perform services on the Project. No such assignment or delegation will relieve the party of
  its duties under this Agreement.

  This Agreement will be construed in accordance with the laws of the State of
  _______________. The parties submit to the jurisdiction of the appropriate court of
  _______________________. [Instruction: Provide the county and town/city where both
  parties agree that any dispute will be heard.]

  This Agreement constitutes the entire agreement of the parties (superseding all prior
  agreements and understandings, oral or written) with respect to the subject matter hereof and
  shall not be modified or amended in any respect except in a writing

  IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
  stated above.

  Being of sound body and mind and able to legally enter into a contract, I agree to be bound to
  the above Agreement.

  Profit Sharer

  ___________________           ___________________                ___________________
  SIGNATURE                           NAME                               TITLE

  Worker

  ___________________           ___________________                ___________________
  SIGNATURE                           NAME                               TITLE


  Witness (sign): _________________________

  Print Name/Address: ______________________________________________

  Witness (sign): _________________________

  Print Name/Address: ______________________________________________




© Copyright 2013 Docstoc Inc.                                                             3

				
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Description: This is an agreement between an owner of real estate and a worker for a project that will improve the value of the real estate. The owner of the property agrees to provide all money necessary to complete the project while the worker agrees to be responsible for the day-to-day management of the project. In return for the worker’s management of the project, the worker will receive fifty percent (50%) of any positive profit gained in the sale of the property that can be attributed to the project. This agreement is ideal for property owners or property management companies that want to share the profits realized by a construction project on their property.