In Lagos’ booming real estate market, Joint Venture (JV) deals have become a powerful way for landowners and developers to collaborate on profitable projects. But knowing how to spot a good JV deal is key to avoiding losses and legal troubles.

What is a Joint Venture (JV) in Real Estate?

A Joint Venture (JV) is a legal partnership between two or more parties—often a landowner and a developer—who combine resources to develop property. The landowner provides the land, while the developer funds and manages the construction. Profits are then shared based on a pre-agreed ratio.

What Makes a Good JV Deal?

– Transparent Profit-Sharing: In Lagos, fair JV agreements often follow a 60:40 or 70:30 split, depending on the party bringing the land or capital.

–Detailed Agreement: A proper JV should cover responsibilities, timelines, and exit terms—in writing.

–Professional Support: Always involve a real estate lawyer and conduct a land valuation

Red Flags to Avoid

-Land titles that are not verified or are under dispute

-Developers with no proven track record

–Vague project timelines or reluctance to disclose full terms

Always Do Your Due Diligence

Before signing:

-Confirm that the land is free from government acquisition

-Vet the developer’s credibility

-Clarify who manages approvals, construction, and sales

Final Thought: A smart JV deal is built on trust, transparency, and legal protection. And we at www.mcdanielsrealestate.com are here to hold your hand every step of the way and help you get it right.

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