VIEWS: 810 PAGES: 10 CATEGORY: Equity Financing POSTED ON: 1/22/2011
This is an agreement wherein two or more persons agree to jointly hold the title to the property. This agreement includes, but is not limited to, a recital, and important clauses such as the term of the agreement, occupancy and use, common areas, joint ownership, joint obligations, rental and other income, relationship of the parties, disputes, notices, etc. This agreement contains both standard clauses as well as opportunities for customization to ensure that the understandings of the parties are properly set forth. This agreement is most useful to individuals or entities buying real estate together as partners.
This is an agreement wherein two or more persons agree to jointly hold the title to the property. This agreement includes, but is not limited to, a recital, and important clauses such as the term of the agreement, occupancy and use, common areas, joint ownership, joint obligations, rental and other income, relationship of the parties, disputes, notices, etc. This agreement contains both standard clauses as well as opportunities for customization to ensure that the understandings of the parties are properly set forth. This agreement is most useful to individuals or entities buying real estate together as partners. CO-OWNERSHIP AGREEMENT This Co-ownership Agreement (the “Agreement”) is made and entered into this _________ day of _________, 201______ by and between _________ [NAME OF OWNER 1] of _________[ADDRESS OF OWNER 1], ("Owner 1") and _________ [NAME OF OWNER 2] of __________________[ADDRESS OF OWNER 2] ("Owner 2") (collectively referred to as “Parties”) RECITALS WHEREAS, the Parties are in the process of purchasing certain real property located at ________________________________ [PROVIDE ADDRESS OF PROPERTY THAT WILL BE THE SUBJECT OF THIS AGREEMENT] and more particularly described in the Exhibit A, attached to this agreement and incorporated in it by this reference (the “Lands”) WHEREAS, the Parties have contributed equally (or in such other proportions as may be mutually agreed-upon) such sums of money as may be necessary to purchase the said Lands WHEREAS, it is the intention of the parties that each shall take title to one half interest in the Lands and own, occupy, use, enjoy and dispose of the Lands pursuant to the terms, conditions, restrictions and covenants as contained in this Agreement. NOW THEREFORE, in consideration of the mutual covenants, conditions and promises as set forth in this Agreement and other good and sufficient consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. TERM The term of this Agreement shall commence on the Effective Date as set out herein and shall continue indefinitely unless terminated by either party by giving __________ days notice to the other party. 2. OCCUPANCY AND USE Each of the parties to this Agreement shall be entitled to the exclusive use, occupancy and enjoyment of the portion of Lands as indicated in Exhibit B, attached and incorporated in this agreement by this reference. Each of the parties shall deposit, promptly when due, ½ of the total funds to purchase the Lands © Copyright 2011 Docstoc Inc. 2 3. COMMON AREAS Parties will each have joint rights to use and joint responsibilities to maintain all common areas (e.g. parking lot, exterior areas, etc.) 4. JOINT OWNERSHIP The Parties agree to purchase and will each own joint and equal undivided interests in the Lands. Such interest shall include all rights and obligations of a party with respect to the Lands. Such rights (exclusive and nonexclusive) of use, occupancy and enjoyment shall not be transferable or assignable without the written consent of the other party. 5. JOINT OBLIGATIONS The Parties agree to be jointly responsible for all costs that may be incurred in purchasing and/or maintaining the Lands, including, without limitation, to mortgage payments of both principle and interest, real estate tax payments, private mortgage insurance (if applicable), sewer and water use payments, fire and extended insurance coverage, municipal betterments, electricity, gas and other utilities including heat, and repairs, maintenance and capital improvements, all legal and Land Titles fees incurred in purchasing the Lands, all cost of repairs, renovation, restoration, garbage removal, utilities, taxes and any and all other costs incurred in connection with the Lands. The Lands shall be kept maintained in first class condition, habitable, clean, reasonably freshly painted and attractive and in generally good condition. 6. RENTAL AND OTHER INCOME All income received from rental of any portion(s) of the Lands will be shared jointly by the Parties. All such income shall be deposited to and managed in the joint property account(s) 7. OPERATION AND USE OF LANDS All decisions relating to the rental, use, enjoyment, maintenance and repair of the Lands shall require the consent of both parties. In order to be binding upon the parties, all decisions relating to the Lands shall be documented in writing, initialed by the parties. 8. SALE OF THE LANDS © Copyright 2011 Docstoc Inc. 3 (a) The Lands may not be sold without prior written consent of the both parties. In the event that either party wishes to sell, he or she shall first offer to sell his or her interest to the other party(s) by a written notice stating the proposed terms of sale. The non-selling party shall have a right of first refusal to acquire the interest of the selling party. The other party(s) shall within thirty (30) days of the notice of offer to sell elect either (a) to accept the offer and purchase the offering party’s interest on the terms offered, or (b) consent to the proposed sale to a third party upon terms offered. The failure of the non- selling party to respond within such thirty (30) days period shall be deemed an election to accept the new buyer. The purchase of an interest in Subject Property shall be subject to the terms and conditions of this Agreement. (b) The maximum purchase price will be the fair market value of the interest being sold, as determined by the Parties. If the fair market value cannot be agreed upon by the Parties, it will be the sum established by an independent appraiser selected by the Parties or by such other method as is deemed appropriate by the Parties. (c) 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. 9. ALTERATIONS Neither party shall make any material alteration or improvement on the Lands without the written consent of the other party. 10. ENCUMBRANCES Neither party to this agreement shall cause or suffer any lien, encumbrance, or charge (whether voluntary or involuntary) against the Lands without the express written consent of the other party. 11. DEFAULT In the event if either party defaults in timely performance of its obligations and such failure constitutes a material breach of this Agreement, then, and in that event, the non- defaulting party shall, in addition to such remedies as may be available at law, be entitled to exercise the following remedies: (a). In the case of a financial breach, the non defaulting party may advance such funds as may be necessary to cure such breach. Any funds so advanced shall be repayable upon demand, and shall bear an interest at the rate of 10% per annum, and be secured by a lien upon the interest of the other party in Lands. © Copyright 2011 Docstoc Inc. 4 (b). Elect to cause a sale of Lands or the interest of the defaulting party in the Lands in which event no right of first refusal shall apply. (c). Elect to purchase the interest of the defaulting party in the Lands for a price equal to half of the fair market value of Lands at the time of the breach. 12. JOINT PROPERTY ACCOUNTS Joint Property Accounts will be maintained by the Parties for holding revenue and paying costs related to the Lands. This account shall be funded by the parties based upon their percentage ownership interest in the property. Contributions to the house account shall be made monthly, in amounts to be determined by the parties. Both parties shall have a signature authority for checks on the account. 13. RELATIONSHIP OF PARTIES This Agreement shall not constitute the parties hereto general partners or joint venturers, nor constitute any party the agent of the other or, except as provided herein, in any manner limit any party hereto in carrying on its respective separate business or activities, nor impose upon any party hereto any fiduciary duty by reason of such party carrying on its separate business or activity, nor impose upon any party hereto any liability or obligation except as herein expressly provided. 14. GOVERNING LAW This Agreement shall be governed by and construed in accordance with the laws of the State of ______________________. 15. DISPUTES For any disputes arising under this agreement, parties agree to first attempt to resolve the dispute under mediation and then arbitration in the state of __________. In the event of any dispute hereunder, the party prevailing in such mediation or arbitration shall be entitled to recover, addition to all other remedies and damages, reasonable attorneys’ fees incurred in such action. Parties may, as part of these mediation and arbitration processes, agree to waive all or part of any such award of legal fees; however, such waiver must be in writing, signed by the waiving party. 16. NOTICES © Copyright 2011 Docstoc Inc. 5 All notices, demands, and requests which may be given or which are required to be given by either party to the other, hereunder shall be in writing. Such notices shall be deemed delivered when personally delivered to the address of the party to receive such notice set forth below or, whether actually received or not, five (5) days after having been deposited in any post office or mail receptacle regularly maintained by the United States Government, certified or registered mail, return receipt requested, postage prepaid, properly addressed as follows: If to Owner 1, at: __________________________ __________________________ If to Owner 2, at: ___________________________ ___________________________ 17. ENTIRE AGREEMENT This Agreement sets forth all of the promises, covenants, agreements, conditions and undertakings between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and undertakings, inducements or conditions, express or implied, oral or written. 18. SEVERABILITY 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. 19. COUNTERPARTS This Agreement may be executed in multiple counterparts, each being deemed original and this one being one of the counterparts. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the day and year first above written. © Copyright 2011 Docstoc Inc. 6 ___________________________ Signature ___________________________ Print Name ___________________________ Signature ___________________________ Print Name ___________________________ __ © Copyright 2011 Docstoc Inc. 7 EXHIBIT A LANDS © Copyright 2011 Docstoc Inc. 8 EXHIBIT B © Copyright 2011 Docstoc Inc. 9
"Co-ownership Agreement - Real Estate"