Does a joint venture between an intermediary and a client entitles a brokerage fee?
- Buying an apartment in Israel
- The real estate broker
The Supreme Court ruled that when it comes to eligibility for brokerage fees for a ‘joint venture.’
Several characteristics can be drawn regarding the “joint venture” as a business institution without setting too strict conditions.
For a business organization to be a “joint venture,” the organization must be contractually, explicit or implicit, indicative of the parties’ intention (two or more) to cooperate about a defined business initiative to achieve a goal.
There is a sharing of capital, knowledge, or skills between them.
So too, should there be shared control. In addition, of course, profits and losses should be distributed between the parties to the project.
This collaboration is limited to a particular business project alone sets the joint venture apart.
It should be emphasized that an agreement under which parties undertake to promote a common economic goal does not in itself make consent a joint venture.