This shared equity agreement template has 15 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our shared equity agreement template:
SHARED EQUITY AGREEMENT This Shared Equity Agreement (the "Agreement") is effective [DATE], BETWEEN: [YOUR NAME] (the "Occupant"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its address located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the "Co-Owner "), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its address located at: [COMPLETE ADDRESS] WHEREAS the Occupant and the Co-Owner will each pay a portion of the down payment. The Occupant will use the Property as a home and pay one hundred percent (100%) of the mortgage, property tax, and other expenses associated with ownership after purchase. WHEREAS the Co-Owner plans to co-own the Property for a term of [INSERT NUMBER OF YEARS UNTIL SALE OR BUYOUT]. At the end of the Co-ownership term, the Occupant may buy out the Co-Owner. If the Occupant chooses not to do so, the Co-Owner can buy out the Occupant, or the Property will be sold, and the proceeds shared as described in this Agreement. For their protection and security, the Co-Owners have prepared this Agreement to describe their rights and responsibilities in detail, and to bind each of them to fulfill their promises. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: DEFINITIONS "Designated Party" is defined in Section 2.2. "Equity Sharing Association" means all of the Co-Owners collectively. "Equity Sharing Percentage" means the percentage to be used for the allocation of certain expenses and proceeds as described in this Agreement. The Co-Owner's Equity Sharing Percentage is [insert percentage], and the Occupant's Equity Sharing Percentage is [insert percentage]. "Group" means a group of Parties who together constitute one (1) Co-Owner and who together hold one (1) Co-Ownership Share. "Party" means an owner of any interest in the Property during the term of this Agreement, and any current or future signatory to this Agreement. "Promptly" means within three (3) calendar days of the event triggering the requirement to act. "Property" means the real property commonly known as [insert address of property to be co-owned]. ORGANIZATIONAL MATTERS Organizational Structure The Equity Sharing Association is intended to be an unincorporated association under the laws of the state where the Property is located. The Equity Sharing Association shall not hold title to the Property or to any other real or personal property, rather, title to the Property and to all personal property associated with it, shall be held by one or more of the Parties, subject to the provisions of this Agreement. The Equity Sharing Association shall be empowered to contract for goods and services, as authorized by this Agreement, and perform such other functions on behalf of the Parties as are reasonably necessary to operate the Property and accomplish the purposes of this Agreement, in instances where doing so in the name of all of the Parties would be impossible, impractical or inefficient. This Agreement is not intended to create a partnership, joint venture, or subdivision. Except as specifically provided in this Agreement, no Party is authorized to act as agent for or on behalf of any other Party, to do any act which would be binding on any other Party, or to incur any expenditures with respect to the Property except as specifically provided in this Agreement. Notwithstanding anything to the contrary in this Agreement, any Co-Owner may act on behalf of the Equity Sharing Association to enforce the mandatory provisions of this Agreement without an affirmative authorization or vote by the Equity Sharing Association. An affirmative vote of the Equity Sharing Association shall be required for any action by or on behalf of the Equity Sharing Association that does not involve the enforcement of a mandatory provision of this Agreement. Co-Ownership Shares and Co-Owners The Parties wish to allocate ownership and control of the Property into exactly two (2) discrete Shares, to be referred to in this Agreement as "Co-Ownership Shares". A Co-Ownership Share may be owned by an individual, an entity or a Group. The owner of a Co-Ownership Share shall be collectively referred to as a "Co-Owner." If a Group owns a Co-Ownership Share, the following provisions shall apply: (i) The Group, collectively, shall be referred to as one (1) Co-Owner; (ii) Each Party within the Group shall be jointly and severally liable for all obligations and responsibilities associated with such Co-Ownership Share; (iii) Except as provided in Subsection 2.2.3, all rights associated with such Co-Ownership Share shall be deemed jointly held by the Parties within the Group, and, absent a written agreement or provision of law to the contrary, all such Parties shall be deemed to have equal control of such rights; and (iv) Any act or omission by one (1) of the Parties within such Group shall be deemed the act or omission of the Group. At all times, each Co-Ownership Share shall have exactly one (1) natural person acting as the Designated Party for such Co-Ownership Share. The initial Designated Party for each Co-Ownership Share shall be specified by the Co-Owner at the time he/she/it first executes this Agreement. Thereafter, the identity of the Designated Party may be changed (i) for a period of thirty (30) days following a transfer of any part of the Co-Ownership Share, and (ii) on one (1) occasion during each Annual Usage Cycle. Any Group which is a Co-Owner, and any entity which is a Party, must (i) disclose to all Parties the full legal names of each person or entity with any ownership interest in the Group or entity, (ii) immediately provide Notice to all Parties each time there is an addition, subtraction or other change to the list of full legal names of each person or entity with any ownership interest in the Group or entity, and (iii) upon Notice so requesting from any Party, obtain the signature of any such person or entity on a document guaranteeing the obligations of such Group or entity under the terms of this Agreement. General Presumptions Regarding Allocations The Parties wish to allocate all costs, obligations, benefits and rights associated with ownership of the Property as provided in this Agreement. They intend that the allocations described in this Agreement shall supersede any presumptions regarding such matters which might otherwise arise as a result of: (i) the price paid by a Party for his/her interest in the Property, (ii) the manner in which title to the Property is held, (iii) the acts or omissions of the Parties in relation to the Property, or (iv) the provisions of any other document executed by the Parties. USE OF THE PROPERTY Right and Obligation to Occupy The Occupant shall have the exclusive right to occupy the Property for so long as he/she continues to adhere to the terms and conditions of this Agreement. This right is derived solely from the provisions of this Agreement, which shall be considered the Occupant's lease. The Co-Owner may terminate the lease in the event of a Default by the Occupant. All Co-Owners expressly relinquish all rights to occupy the Property that might otherwise arise presumptively or by operation of law as a result of their ownership interests in the Property. The Occupant recognizes that his/her right to occupy the Property may be terminated, notwithstanding his/her ownership interest in the Property. So long as the Occupant shall have the exclusive right to occupy the Property under this Agreement, he/she shall use the Property as his/her principal residence unless the Co-Owner otherwise consents. The Occupant must request such consent in a Notice given in advance. The Co-Owner may, at his/her sole discretion, refuse such consent, in which case the Co-Owner may terminate the Co-ownership as described in this Agreement.
