This real estate operating agreement template has 5 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our real estate operating agreement template:
REAL ESTATE OPERATING AGREEMENT This Real Estate Operating Agreement (the "Agreement") is effective [DATE], BETWEEN: [COMPANY NAME] a limited liability company (the "Company") organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its principal place of business located at: [COMPANY COMPLETE ADDRESS] AND: [MEMBER NAME] (the "Manager"), an individual/entity with their principal place of residence/business located at: [COMPLETE ADDRESS] WHEREAS, the Company is formed for the purpose of owning, managing, and operating real estate investment properties (the "Properties"); WHEREAS, the Members desire to enter into this Agreement to establish the terms and conditions for the operation of the Company, the management of its real estate assets, and the relationships among the Members of the Company; NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties hereto agree as follows: FORMATION AND PURPOSE Formation: The Company was formed as a limited liability company under the laws of the [State/Province] of [STATE/PROVINCE] by filing the Articles of Organization with the appropriate government authority on [FILING DATE]. Purpose: The primary purpose of the Company is to acquire, manage, lease, sell, and operate real estate properties for the benefit of its Members. The Company may engage in any other lawful business activity as approved by the Members. MEMBERS AND CAPITAL CONTRIBUTIONS 2.1 Initial Members: The initial Member(s) of the Company and their respective capital contributions are as follows: [MEMBER NAME]: [DESCRIPTION OF CONTRIBUTION], representing a [PERCENTAGE]% ownership interest in the Company. 2.2 Additional Capital Contributions: The Members may be required to make additional capital contributions to the Company if deemed necessary for the operation of the Properties, subject to the unanimous approval of all Members. Failure to provide additional contributions may result in a dilution of the non-contributing Member's ownership interest. 2.3 Membership Interests: The Members' ownership interests shall be reflected in the Company's records and based on the percentage of their respective capital contributions. Membership interests may not be transferred, assigned, or sold without the prior written consent of all Members. MANAGEMENT OF THE COMPANY 3.1 Manager-Managed Structure: The Company shall be managed by a Manager or Managers designated by the Members. The Manager shall have full authority to manage and operate the day-to-day business and affairs of the Company, including the acquisition, operation, maintenance, leasing, and sale of the Properties. 3.2 Appointment of Manager: The initial Manager of the Company is [MANAGER NAME], who is authorized to perform all necessary and proper duties to operate the business of the Company. The Manager may be removed and replaced by a majority vote of the Members at any time. 3.3 Duties and Responsibilities of the Manager: The Manager shall: Oversee the operation, maintenance, and leasing of the Properties. Manage the financial affairs of the Company, including budgeting, paying bills, collecting rents, and preparing financial reports. Negotiate and execute leases, contracts, and agreements related to the Properties. Ensure compliance with all applicable laws, regulations, and zoning requirements. Provide regular updates and financial reports to the Members. 3.4 Major Decisions Requiring Member Approval: The following actions require the approval of a majority of the Members: Sale, transfer, or disposition of any of the Properties. Approval of any financing or refinancing involving the Properties. Entry into any contract or agreement that would obligate the Company beyond [AMOUNT]. Admission of new Members or transfer of membership interests. DISTRIBUTIONS AND ALLOCATIONS 4.1 Distributions of Cash Flow: The net cash flow of the Company, after payment of all expenses, liabilities, and reserves, shall be distributed to the Members in proportion to their respective ownership interests, unless otherwise agreed by all Members. 4.2 Profits and Losses: Profits and losses of the Company shall be allocated to the Members in proportion to their respective ownership interests
