One of the most heavily negotiated provisions in any real estate transaction agreement is the transfer provision. Transfer restrictions are a significant focus in documenting joint ventures, loans and even dispositions of real estate.
The typical real estate joint venture consists of an operating partner that provides management services and expertise and a financial partner that provides most or all of the equity. The parties care deeply about the identity of their respective partners—the financial partner is invested in the experience, skills and integrity of its operating partner and the persons who control it, and the operating partner is relying not only on the resources of its financial partner but also, in many cases, on the financial partner's perceived reasonableness and responsiveness in granting or withholding consents and approvals.
