Fill and Sign the Agreement Ownership Template Form

Agreement as to Tenancy-in-Common Ownership of Premises with neither Owner to Sell or Rent Premises without Other’s Consent Agreement made on the _____________ (date) , between _______________________ (Name of Owner One) of _______________________________________________________ ______________________ (street address, city, county, state, zip code) , referred to herein as Owner One , and ____________________ (Name of Owner Two) , of __________________ ______________________________________________________________ (street address, city, county, state, zip code) , referred to herein as Owner Two , Owner One and Owner Two being jointly referred to herein as Owners . Whereas, each Owner has contributed to a common fund and have acquired the fee title to the premises located at _______________________________________________________ ______________________ (street address, city, state, zip code) , hereinafter called the Premises, said Premises being more fully described in Exhibit A, which is attached to and made a part of this Agreement; and Whereas, each Owner has an equal and undivided one-half interest in the Premises; Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Ownership Each party to this Agreement shall own an undivided 50% interest in the Premises, and shall share equally in mortgage payments, household insurance, taxes, utilities, maintenance, or improvements (except telephone) related to, or to become a part of, the Premises. 2. Improvements, Sale or Mortgage of Premises The written consent of both Owners shall be required in order to improve, sell, or mortgage the Premises and any such improvement, sale, or mortgage shall be of the entire Premises, except as provided in Section Six. 3. Sharing of Expenses Each Owner shall advance, or cause to be advanced in a timely fashion, their one-half share of the money required to pay for the maintenance and operation of the Premises, (including interest and principal on the mortgage liens), and for the cost of any improvements. All accounts for repairs and improvements (plumbing, paint, etc.) shall be put in the names of both Owners, and a single account book showing these expenses will be kept. If, after agreement of the Owners that an improvement benefits only one Owner, or benefits one Owner more than the other, the costs shall be paid in proportion to the amount of benefit to each Owner. The Owner contributing more than 50% of the costs of the improvement shall be entitled to a credit for the amount that this contribution exceeds 50% of the total cost, at the time the property is sold or otherwise disposed of. 4. Default in the Sharing of Expenses If either Owner fails to contribute his or her one-half share of the common expenses (including mortgage, principal, interest, and taxes), the other Owner shall have the right, after giving the defaulting Owner ______ (number) days notice in writing, to exercise either the following Options: A. Option One: Buy the defaulting Owner's interest in the Premises for an amount not to exceed 50% of the defaulting Owner's equity, or $_________, whichever is less, in the property, or to sell the property with the defaulting Owner receiving not more than 50% of his or her equity, or $_________, whichever is less. In either case, defaulting Owner will deliver a deed at the request of the non-defaulting Owner. In the case of a sale of the Premises under this provision, defaulting Owner's equity shall be calculated by subtracting from the defaulting parties equity, any costs of the sale, including broker's commission, if any, legal fees, and missed contributions of the defaulting Owner. B. Option Two : Subtract the amount of defaulting Owner's unpaid share from his equity, accruing interest at the rate of _____% from the date the debt is incurred. If the defaulting Owner's equity in the Premises is reduced to zero by failure to pay his share, the defaulting Owner shall deliver a deed to the non-defaulting Owner for his or her respective interest. 5. Renting Neither Owner shall rent to a third party their portion of the property without the written consent of the other Owner. Should either Owner move, and choose to keep their portion as income property, he shall act as landlord, collecting rent, maintaining the property, and fulfilling landlord responsibilities, along with maintaining all other responsibilities under this Agreement. 6. Sale of the Premises If, and when, either Owner wishes to sell their respective share of the property, he shall give no less than _______ (number) month’s written notice to the other Owner. The non-selling Owner shall have the option to purchase the other Owner's equity. The fair market value of the Premises is to be determined by no less than two appraisals, using MAI Designated Independent Fee Appraisers. The selling Owner shall have his name removed from the mortgage, deed, all common bills (utilities, etc.), and any other related documents. The consent of the non-selling Owner to the sale must be secured to make any contract to sell effective. This consent cannot be unreasonably withheld. If the non-selling Owner fails or refuses to consent to two proposed purchases, the selling Owner is not required to secure non-selling Owner's consent to the third proposed buyer, and may sell his or her respective share, as long as all other terms of this Agreement are met. 7. Death or Incompetence If either Owner should die or become mentally incompetent while in co-ownership of the Premises, the estate of the deceased or mental incompetent will give the other Owner a one- year option, from the date of death or mental incompetence, to buy the deceased or mental incompetent Owner's interest in the premises. Owner One shall execute and deliver a durable power of attorney to __________________ (Name of Agent of Owner One) . Owner Two shall execute and deliver a durable power of attorney to ___________________ (Name of Agent of Owner Two) . The powers of attorneys are to be exercised only for the purpose of conveying the incompetent Owner's respective share if this option is exercised. The attorney-in-fact shall be bound by the terms and conditions of this Agreement. Should it be determined that a court order is required to consummate a conveyance in the case of mental incompetence, the costs of securing this order shall be shared by both Owners, or their estates. 8. Long-Term Disability In the event of long-term disability of either Owner, the provisions of Section Four shall apply. The non-disabled Owner shall be obligated to present bills for the disabled Owner's share of expenses to the disabled Owner, or his representative. 9. Life Insurance Each Owner shall carry a $_________ term life insurance policy naming the other Owner as beneficiary. 10. Rights of Transferee Should the interest of either Owner be acquired by any individual, the shall be subject to all terms of this Agreement, with the same force and effect as if the transferee owned such interest at the time this Agreement was executed, and as if the transferee was a party to and signed this Agreement at that time. 11. Termination of Agreement This Agreement shall terminate on the sale of the Premises, and the distribution of the net proceeds of such sale to the Owners, and according to this Agreement, or at such other times or dates, as may be agreed on, in writing, by the parties. 12. Severability The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 13. No Waiver The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. 14. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of ______________. 15. Notices Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement. 16. Attorney’s Fees In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees. 17. Mandatory Arbitration Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect. 18. Entire Agreement This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement. 19. Modification of Agreement Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party. 20. Assignment of Rights The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party. 21. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine. WITNESS our signatures as of the day and date first above stated. ________________________ _________________________ (P rinted name) (P rinted name) ________________________ _________________________ (Signature of Owner One) (Signature of Owner Two) (Acknowledgment form may vary by state) State ______________ County of _______________ Personally appeared before me, the undersigned authority in and for the said county and state, on this _____ day of ______________, 20____, within my jurisdiction, the within named, _______________________ (Name of Owner One) , who acknowledged that he executed the above and fore going instrument. _____________________ NOTARY PUBLIC My Commission expires: ______________________ State ______________ County of _______________ Personally appeared before me, the undersigned authority in and for the said county and state, on this _____ day of _____________, 20____, within my jurisdiction, the within named, ________________________ (Name of Owner Two) , who acknowledged that he executed the above and fore going instrument. _____________________ NOTARY PUBLIC My Commission expires: ______________________