Investments in construction, that is, investing in the process of constructing buildings for the purpose of their subsequent sale or lease, require documentary registration in order to distribute duties, profits and responsibilities.
A legal entity is often created for future construction, but it is much more convenient to interact on the basis of a contract, since the cumbersome structure of a legal entity obliges to comply with corporate rules, make decisions on dividends and pay profits from them. Currently, five contracts are used when investing in construction: a simple partnership agreement, a shared construction participation agreement, a contract, a contract for the sale of a future thing and an investment agreement itself. Each has its own specifics, pros and cons.