Property development JVs: create a draft heads of terms document in 5 minutes

A ‘heads of terms’ document is a critical step in pulling together a property development joint venture. It helps ensure that the parties are on the same page, and avoid wasted time and cost further down the line.

LCN Legal has developed a free tool to help the founders of property development joint ventures create a draft heads of terms document quickly and easily – typically in five minutes or less. No login or payment is required.

The tool uses an online questionnaire to collect the key information. It creates a draft heads of terms document in Word format, which you can download immediately and edit as needed.

The tool is designed for situations where:

• the vehicle for the joint venture will be a UK private company limited by shares (the ‘JV company’);
• one or more founders (which may be companies) will hold shares in the JV company;
• the founder(s) may also provide services to the JV company and may contribute funds to the venture;
• one or more financial investors will provide funds, and will receive shares in the JV company in proportion to the amount invested; and
• the JV company will buy the property or site from an unconnected third party.

The tool is currently in ‘Beta testing’ form. Any feedback or suggestions as to how it can be improved would be very welcome.

You can access it here.

If you know someone else who might find this tool useful, please do share this blog post with them.