Fill and Sign the Equity Agreement Form

Equity Share Agreement Recorded Requested By: ____________________ (Name) When recorded mail to: ____________________ (Name and address) Agreement made on the _________________ (date) , between _________________________ (Name of Investor Alpha) of ____________________ ___________________________________________________ (street address, city, state, zip code) , referred to herein as Alpha , and _______________________ (Name of Investor Beta) , of ____________________________________________________ ____________________ (street address, city, state, zip code) , referred to herein as Beta . Whereas, the parties desire to purchase for investment a parcel of residential property with a home located thereon (the Property ); and Whereas, the address of the Property is ________________________________ _____________________________________ (street address, city, state, zip code) , and the legal description of the Property is as follows: (Legal Description) ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ 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. Purchase Price The property is to be purchased for $______________ and $_____________ will be paid as a down payment. Of that down payment, $______________ will be paid by the Alpha and $_____________ will be paid by Beta. The balance is being financed through ____________________________ (name of financial institution) and the loan terms, in part, are as follows: A. Amount Financed: $________________________; B. Rate of Interest: ______%; C. Interest Cap (if variable): ______%; 2. Escrow Expenses: Both parties will share Escrow expenses equally. 3. Beta shall reside in the house (the House ) located on Property on the terms set forth herein. 4. Alpha and Beta shall hold title to the Property as tenant in common. 5. Formation of Equity-Sharing Venture Alpha and Beta do hereby form an Equity-Sharing Venture with respect to the Property. 6. Investment Amounts A. The parties have contributed to the capital of this equity-sharing Venture an initial amount of cash in the following amounts: Beta: $_________________ or ______%; Alpha: $_________________ or ______%. Total: $_________________. B. The percentages reflected above is the Party’s Share of the Initial Equity Investment as used in Section 8. This constitutes the entire initial capital of this Equity-Sharing Venture. The entire sum has been expended as a down payment on the house. Escrow costs will be separate and will be shared equally by both parties. Additional Capital shall, from time to time, be contributed to the Venture in order to improve the property when agreed upon by both parties. 7. Loans by Parties If the parties determine that it is necessary for purposes of obtaining the objectives of this Agreement, either party may at any time lend additional funds to the Venture on an unsecured promissory note or notes which shall bear such legal interest and be payable on such terms as the parties and the lender may mutually determine. 8. Occupancy by Beta In order to improve, protect and maintain the house pending resale, Beta shall reside in the house. Beta shall provide maintenance, repairs and pay utilities. Interest and taxes shall be divided as follows: Beta: ______%; Alpha: ______%. Both parties shall be entitled to deduct their percentages for taxes. 8. Distribution of Proceeds on Sale of House. Distribution of the proceeds of the sale of the House shall be as follows: A. First, to _____________________ (name of financial institution) ; B. Second, to all other creditors; C. Third, to Alpha and Beta with respect to any loans by them to the Venture; D. Fourth: to Alpha and Beta with respect to their capital contributions as determined pursuant to the provisions of this Agreement; E. Fifth: to Alpha and Beta in relation to their Share of the Initial Equity Investment. 9. Intention of the Parties It is the intention of the parties hereto that they both participate in the appreciation of the value of the House which arises from an escalation of property value due to inflation and major improvements which have been undertaken by both parties. If the value of the house depreciates, that share of each party shall be that parties initial capital contribution less the amount of depreciation to be absorbed according to percentage of ownership. For resale, the property shall be appraised by three different realtors and be placed on the market at the average of all three appraisals. The final sale price shall be in set forth in an addendum to the Agreement signed by both parties. 10. No party shall do any act detrimental to the best interests of the Venture or which would make it impossible to carry on the ordinary business of the Venture. 11. Neither party shall have the right to assign such party’s interest in the Venture without the express written agreement of the other party. 12. Death of Alpha or Beta It is understood by both parties that this Agreement was entered into to assist the Beta to purchase a place to live in the House is understood to be his home. Another purpose is that Alpha will profit at the sale of the House on an Equity-Sharing basis. Therefore, both parties agree that should one precede the other in death, the executor of the decedent will work with the surviving member of the Venture in determining market value and division of proceeds as laid out in this Agreement. 13. Each of the parties hereto, hereby agrees to make, execute and deliver any and all documents and papers necessary or property to carry out the spirit and intent of this Agreement. 14. The terms of this Agreement until the House is sold and the proceeds are distributed pursuant to Section 8 of this Agreement. 15. 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. 16. 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. 17. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of __________. 18. 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. 19. 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. 20. 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. 21. 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. 22. Counterparts This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. 23. 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 Alpha) (Signature of Beta) (Acknowledgment form may vary by state) State of _____________________ County of ___________________ Personally appeared before me, the undersigned authority in and for the said County and State, on this _________________ (date) , within my jurisdic tion, the within- named Alpha, who acknowledged that he executed the above and foregoing instrument. ________________________________ NOTARY PUBLIC My Commission Expires: ____________________ State of _____________________ County of ___________________ Personally appeared before me, the undersigned authority in and for the said County and State, on this ________________ (date) , within my jurisdic tion, the within- named Beta , who acknowledged that he executed the above and foregoing instrument. ________________________________ NOTARY PUBLIC My Commission Expires: ____________________