Personal Property Co-Ownership Agreement

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Personal Property Co-Ownership Agreement Powered By Docstoc
					This Personal Property Co-Ownership Agreement sets forth the terms and conditions of
an agreement between two parties who co-own certain personal property. The
document provides the respective ownership interest of each party, as well as the
respective ongoing rights and obligations of each party with respect to the property.
This document contains numerous standard clauses that are commonly included in
these types of agreements, and is fully customizable to ensure the agreement between
the parties is accurately memorialized. Individuals who co-own personal property or
want to enter into an agreement to co-own personal property should use this document.
                                Personal Property Co-Ownership Agreement

This agreement is executed this _____day of _____, ______ [Instruction: Insert agreement
date.] by and between: _____ [Instruction: Insert first party’s name.] (“First Party”) and
______ [Instruction: Insert second party’s name.] (“Second Party”). First Party and Second
Party have purchased certain personal property known as _____ [Instruction: Insert brief
description of the jointly owned property. If a more comprehensive listing is required,
attach same as a schedule to the agreement, and state that same is attached and
incorporated as if fully set forth herein.], herein referred to as the Property. The parties hereto
acknowledge that they own the Property as ______ [Instruction: Insert how property is titled,
if titled. Otherwise, state how parties intend ownership to be held.] and that First Party has
_____ [Instruction: Insert First Party’s respective ownership percentage.] percentage
beneficial ownership interest and Second Party has ______ [Instruction: Insert Second Party’s
respective ownership percentage.] percentage beneficial ownership interest in the Property.

For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and in consideration of the mutual covenants and conditions herein contained, the
parties hereto agree as follows:

    1. The Property was purchased on _____ [Instruction: Insert Property purchase date.] for
       a price of $_____ [Instruction: Insert Property purchase price.]. The parties have
       each made an equal capital investment [Comment: If each party made different capital
       investments, please list here.] towards the purchase of the Property. [Comment: If any
       outstanding debt is attributable to Property, state here amount of debt, and how
       each party is obligated to pay such debt.]
    2. The parties hereto deem it in their best interests to define their obligations to each other
       with respect to the ownership, maintenance and sale of the Property, and to provide for a
       mechanism to allow for the sale of either party’s interest.
    3. It is the intention of the parties is that First Party and Second Party shall have use of the
       Property as follows: _____. [Instruction: State how parties shall divide usage of the
       Property, and if either shall have to pay any fee to the other for such usage.
       Further, the parties may wish to define the permitted usage of the Property,
       including whether or not same must or may exclusively be used for business or
       recreational uses, and whether or not the Property may be lent (without any rental
       being paid) to any other person or entity by either party.]
    4. Optional language: The parties expressly state that they do not intend to create a
       partnership whereby any co-owner shall be liable for the act of any other co-owner,
       to the extent permitted by applicable law.
    5. The parties hereto agree they shall bear the costs of the Property in proportion to their
       ownership interests in the Property. For purposes of this agreement, “carrying costs”
       shall be deemed to include but not limited to payments of both principle and interest on
       the Property for which both parties are indebted, tax payments, insurance (if applicable),
       repairs, maintenance and capital improvements. [Instruction: Insert any additional
       specific carrying costs which may be applicable.] The parties further agree that any
       special assessments which may be assessed as a carrying cost of the Property shall be
       borne by the parties in proportion to their ownership interests in the Property.



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        [Comment: Parties may wish to provide a mechanism for loss of use of the Property
        in the event a party does not pay his respective carrying charges, assessments or
        other amounts owed pursuant to the agreement.]
    6. All documents pertaining to the ownership of the Property shall be maintained by ______
        [Instruction: Insert name of party responsible for ownership documents.].
    7. The Property shall be kept and generally maintained in generally good condition. Any
        repair or capital improvement or item of maintenance to the Property costing more than
        $100.00 shall require the approval of all parties but such approval shall not be
        unreasonably withheld and shall be given to conform to the standards of the paragraph,
        and the costs and expenses of such repair or capital improvement or item of maintenance
        shall be divided among the parties as set forth in this agreement. Notwithstanding the
        foregoing, in the event any such repair or capital improvement or item of maintenance to
        the Property shall be required by any governmental authority or other authority with
        jurisdiction over the Property shall not require any such approval of either party.
    8. The parties agree that they shall not rent the Property. In the event the parties shall agree
        in the future to rent the Property, any such rental shall be made to persons or entities who
        shall be approved by both parties or by their duly appointed agent or management
        company at an agreed upon fair market value. Any collected rents shall be used to
        directly reduce the carrying costs of the Property. Any positive cash flow shall be
        distributed to the parties in proportion to their ownership interest, unless otherwise agreed
        in a writing signed by both parties. In the event of any such rental, each party shall be
        responsible to file any necessary forms and pay any taxes applicable to any such income
        collected based upon their percentage interest, unless otherwise agreed in a writing
        signed by both parties or as otherwise required by applicable law.
    9. The parties agree to pay the Property carrying costs as stated in this agreement as and
        when same shall become due and payable. [Comment: If parties are going to set up an
        account from which to pay for such carrying costs, detail the method and manner in
        which same shall be set up, including how often same must be funded, and whether
        or not both parties shall have signatory access on the account.]. The parties further
        agree that ____ [Instruction: Insert name of responsible party.] shall be responsible for
        ensuring all payments for any such carrying costs are paid as and when same shall
        become due and payable.
    10. In the event that either party should wish to sell his or her interest in the Property, he
        shall first offer to sell his or her interest to the other party(s) hereto by a written notice
        stating the proposed terms of sale. The other party(s) shall within thirty (30) days of the
        notice of offer to sell elect either (I) to accept the offer and purchase the offering party’s
        interest on the terms offered, or (II) consent to the proposed sale to a third party upon
        terms offered, or (III) agree to list the Property for sale on the market. Any closing
        between parties arising from a sale or transfer under this paragraph shall occur within a
        reasonable time agreed upon by all parties. In the event that only an interest in the
        Property is sold, the willing seller shall be responsible for all seller fees and shall be
        solely responsible for his payment of any liens or encumbrances arising out of his or her
        separate obligations and shall deliver good, clear, record and marketable title except for
        joint encumbrances and matters known to the parties on the date of acquisition of the
        Property. In the event a withdrawing co-owner is behind in the payment of any monthly
        contributions for carrying costs or special assessments, these arrearages shall be deducted



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        from the amounts paid above. In the event that the Property is sold by all parties, the
        costs incurred by selling (i.e. payment of mortgage, broker’s commission, escrow, title,
        etc.) will be deducted from the purchase price, and the net amount will then be divided
        between the parties upon their percentage interest, unless otherwise agreed in a writing
        signed by both parties. In the event any co-owner is behind in the payment of any
        monthly contributions for carrying costs or special assessments, these arrearages shall be
        deducted from the amounts paid above.
    11. Either party shall be permitted to transfer his ownership interest hereunder by will or
        intestacy without restriction, except that any such transferee shall be bound by the terms
        of this agreement. The costs associated with any such transfer shall be payable by the
        transferee.
    12. For any disputes arising under this agreement, parties agree to first resolve the dispute
        under mediation and then arbitration in the county of _____ [Instruction: Insert
        arbitration county.]. In the event of any dispute hereunder, the party prevailing in such
        mediation or arbitration shall be entitled to recover, in addition to any and all other
        remedies and damages, and reasonable attorneys’ fees incurred in such action.
    13. Any notices sent or required to be sent pursuant to this Agreement shall be in writing and
        be deemed to be duly served if mailed, postage prepaid, certified mail, return receipt
        requested, or delivered by Federal Express or other comparable overnight carrier, or
        delivered in hand by a duly appointed constable, to the addresses of the parties stated
        below or to such other addresses as either party may notify the other by notice given
        pursuant to this paragraph: ______ [Instruction: Insert First Party and Second Party’s
        respective addresses.].
    14. This agreement shall be construed, interpreted and enforced in accordance with the laws
        of the State of _____ [Instruction: Insert state.].
    15. This agreement constitutes the entire agreement of the parties with respect to its subject
        matter, and may not be changed orally, but only by an agreement in writing signed by the
        party against whom the enforcement of any waiver, change, modification, extension or
        discharge is sought.
    16. The waiver by one party of a breach of any provision of this Agreement by the other
        party shall not operate or be construed as a waiver of any previous or subsequent breach
        of the same or any other provision by the other party.
    17. In the event that any portion of this agreement shall be deemed null and void or
        unenforceable by any court of competent jurisdiction, then notwithstanding the same, the
        remaining provisions of this agreement shall be full force and effect.
    18. This agreement or any subsequent amendment or modification hereto may be executed by
        facsimile and/or in one or more counterparts, each of which when so executed and
        delivered shall be deemed an original, but all of which taken together shall constitute but
        one and the same original. Each party shall accept any such signed faxed counterpart as
        full execution of this agreement or any subsequent amendment or modification thereto.
    19. The pronouns used herein shall include, where appropriate, either gender or both,
        singular and plural.

IN WITNESS WHEREOF, the undersigned have executed this agreement under seals of the
date and year first written above.




© Copyright 2012 Docstoc Inc.                                                          4
___________________________
First Party Signature Block

___________________________
Second Party Signature Block




© Copyright 2012 Docstoc Inc.   5
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Description: This Personal Property Co-Ownership Agreement sets forth the terms and conditions of an agreement between two parties who co-own certain personal property. The document provides the respective ownership interest of each party, as well as the respective ongoing rights and obligations of each party with respect to the property. This document contains numerous standard clauses that are commonly included in these types of agreements, and is fully customizable to ensure the agreement between the parties is accurately memorialized. Individuals who co-own personal property or want to enter into an agreement to co-own personal property should use this document.