One of the toughest discussions that any couple can have is what will happen upon a breakdown of their relationship. Likewise, negotiations concerning the collapse of real estate joint ventures are among the most vexing, contentious and emotional—particularly in connection with the removal of the real estate operator from its role as the manager of the JV by the investor member(s) in the event of non-performance or “bad boy” acts.
Though difficult, recent events and common sense militate for clear language in the JV agreement concerning the right of the investor member to remove the manager in such circumstances.
