Real Estate Joint Venture Contribution and Indemnity Agreement

This real estate joint venture contribution and indemnity agreement is used to allocate responsibility among the guarantors of a loan made to the joint venture secured by the real property the joint venture owns. This template includes practical guidance, drafting notes, and optional clauses. For a full listing of key content covering real estate joint ventures (90/10 ownership split), see Real Estate Joint Venture Resource Kit (90/10 Real Estate Joint Venture). The acquisition or construction of a commercial real estate asset is frequently funded by a mortgage loan. The mortgage lender, in addition to having a mortgage on the real property, often requires one or more guarantees to be executed by the members of the joint venture or their principals who have a sufficient net worth and liquidity to satisfy the loan obligations. This agreement is used to allocate responsibility among the guarantors in connection with such loan. This agreement is among the guarantors. If any non-guarantor party (e.g., a member of the real estate joint venture that is not a guarantor) has agreed to be liable to the guarantors, this agreement should be revised to include such member as a signatory of this agreement with such member's percentage share of any guaranty obligations clearly stated. For more on real estate joint ventures, see Real Estate Joint Ventures for Commercial Real Estate Development.