Nonmarital or Cohabitation Agreement between Parties
Living Together with Joint Purchase of Real Estate
This Cohabitation Agreement is made on (date), between (Name of Male), an adult,
of (street address, city, state, zip code), and (Name of Female) of (street address, city,
state, zip code);
Whereas, the parties to this Agreement have been living together since (date) at (street
address, city, state, zip code), and it is their intent to continue such living arrangement;
Whereas, the parties intend to purchase a home in which to continue their living
arrangement and to define their respective rights with respect to the home;
Now, therefore, for and in consideration of the matters described above, and of the
mutual benefits and obligations set forth in this Agreement, the parties agree as follows:
1. Description. The property to be purchased by the parties is situated at (street
address, city, state, zip code), and is more particularly described in Exhibit A attached
hereto and made a part hereof.
2. Purchase Price. The purchase price of the above-described property is
$__________. The down payment is $__________, and each party shall contribute
$__________ for the down payment. The monthly mortgage payment is $_________,
and each party shall contribute 50% of that amount.
3. Closing Costs. The estimated closing costs are $__________, and each party
shall contribute $__________ toward those closing costs.
4. Costs of Maintenance. Each party shall also pay 50% of all costs in connection
with the maintenance of the house, such as, but not limited to, property taxes,
insurance, repair, improvements, telephone, heat, electricity, water, garbage disposal,
and other utilities.
5. Joint Account. The parties shall open a joint checking account with (Name of
Bank) of (street address, city, state, zip code), from which the payment of the mortgage
and maintenance costs shall be drawn. (Name of Male) shall deposit $__________ into
the account monthly and (Name of Female) shall deposit $__________ into the account
6. Title to Property. Title to the above-described property shall be in the name
of (Name of Male) and (Name of Female), as (tenants in common or joint tenants with
right of survivorship).
7. Disposition of Property on Separation.
A. If either or both of the parties decide to separate and if either party desires
to become the sole owner of the above-described property, the party who wishes
to become the sole owner of the property shall purchase the other party's interest
for an amount equal to such other party's equity interest in the property. The
equity of each party shall be determined by deducting from the fair market value
of the property all outstanding mortgages, encumbrances, and other obligations.
The equity interest of each party shall be the proportion of that party's
contribution to the purchase price and closing costs of the property. The fair
market value shall be determined by an appraisal conducted by two independent
real estate appraisers, one of which shall be selected by each party, and whose
fees shall be borne by the party selecting the appraiser. The fair market value
shall be the average of the two appraisals.
B. The equity of the selling party shall be paid by the purchasing party
within (number) days from the date the fair market value is determined. If the
purchasing party is unable, after reasonable efforts, to obtain a loan secured by a
mortgage on the property, the selling party shall give the purchasing party a
mortgage for the unpaid balance, to be payable in (number) monthly installments,
with interest at ____% per annum.
C. If neither of the parties desires to become the sole owner of the property,
then the parties shall sell the property for such price as shall be agreed on, and
the proceeds shall be divided in pro