A Joint Venture (JV) Agreement is a legal contract between two or more parties, individuals, companies, or organizations who agree to collaborate on a specific business project or goal while maintaining their separate identities. It defines how the parties will work together, share resources, split profits and losses, and manage risks. In a joint venture, the parties combine their strengths such as capital, property, expertise, or technology to achieve something that would be more difficult or expensive to accomplish alone. The JV can be formed as a separate legal entity (like an LLC or corporation) or as a contractual partnership without forming a new business entity.

Simple rules for South Carolina Transactions: - Federal § 121 Exclusion (Home Sale Exclusion): If the property is your primary residence and you meet the use and ownership tests (2 of last 5 years), you may exclude up to $250,000 (individual) or $500,000 (married filing jointly) of gain from federal taxable income. This helps reduce the gain that flows into your SC return. - Nonresident Withholding: If a nonresident sells real property in South Carolina, the buyer or the closing agent must withhold SC income tax (based on certain rules) up front, unless an exemption applies.

In North Carolina, real estate transactions operate under a “Due Diligence Period” which gives buyers a set amount of time to inspect the property, secure financing, and decide whether to move forward with a purchase. Unlike earnest money, the due diligence fee is typically non-refundable, but it gives buyers the right to cancel the contract for any reason during that period. The seller retains this fee if the buyer walks away. Why this matters for investors: - Negotiate an appropriate due diligence period to thoroughly evaluate investment properties. - Budget enough time for inspections, appraisals, and title review during this time. - If you’re selling, a higher due diligence fee can signal a more serious buyer and helps protect your timeline.

The real estate closing process generally begins with opening escrow, followed by a title search, inspection, appraisal, mortgage approval, and any necessary negotiations or repairs. After a final walkthrough, the buyer receives the Closing Disclosure, wires funds, and both parties sign all required documents. Once the deed is recorded with the county, ownership is officially transferred, and the buyer receives the keys.