Real estate partnerships like this can be a burden on your relationship if your partner is a friend or relative. Fights can`t be avoided, so you need to be ready to make your relationship work. Someone loses their job, divorces, moves, etc. No one expects to have to sell their share of the property, but it happens! Only plan it in case it happens. No one should absorb a 20-40% loss of value because they have chosen to buy land in partnership. The following two options are generally recommended. The parties are currently parties to the property management contract with (the “management contract”). or simultaneously become parties to the property management contract. (the “manager”) is the only property manager acting on behalf of the parties for the management, operation, maintenance and leasing of the property for the duration of the administrative agreement.
If a property is used several times, it is also possible to have hunting partners and non-hunters for other reasons. Diversity is often a good thing. Establishing a property management agreement with your LLC can explain what happens when an owner dies. The agreement may provide that the deceased owner`s share is distributed equitably among the remaining owners or transferred to a child or other family member. They may also contain instructions on when and how owners can sell their shares while they are still alive. Having these written instructions makes the transition much more fluid and friendly. As with every transaction, it`s important to choose the right partner and make a plan for how you act as a group. Owners must share the same vision for the land.
It is important to agree on issues such as foster hunters, how payments are made, what happens when someone is lagging behind or dies. Do it before you make a purchase. Then visit a real estate lawyer to put these agreements in writing. It is very common for every partner in a property to look for something else. This is especially true for deer hunting, but also for any partnership. For example, a partner might seek to harvest only the mature pope and young white tails… while the other wants to shoot with his three brothers. There are several conflicting objectives when it comes to recreational property. Another example would be one of a partner who wants to cultivate the state record, while the other wants to have a large Panfish Lake. The result of these differences often leads to emotional difficulties. Let`s use Bill and Steve`s example again.
Bill and Steve purchase 100 hectares of recreational land with 50 acres of plowing and a 10-hectare lake. Bill wants to hunt trophies on record pound whitetails and increase the state record of Largemouth Bass. He has seen the same 3.5-year-old deer with great genetics and it occurs. Later that year, Steve`s brother dropped the same deer at the end of the season.
