Homestead Property Agreement

HOMESTEAD PROPERTY AGREEMENT

This Homestead Property Agreement ("Agreement") is entered into on this day of , , by and between Owner: whose address is (hereinafter "Owner"), and Homestead Claimant: whose address is (hereinafter "Claimant"). These parties are collectively referred to as the "Parties".

RECITALS

WHEREAS, Owner is the record owner of certain real property located at (the "Property"); and

WHEREAS, Claimant asserts homestead rights and seeks to secure, protect, or affirm a homestead designation and related occupancy and exemption rights in respect of the Property; and

WHEREAS, the Parties desire to set forth their mutual agreements regarding occupancy, use, encumbrances, and the procedures for claiming any homestead protections permitted by applicable law.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

1.1 "Property" means the real property described by address above and by the legal description set forth below. The legal description is incorporated into this Agreement by reference.

2. GRANT AND PURPOSE

2.1 Owner hereby acknowledges and confirms that Claimant occupies the Property and that Claimant is asserting homestead rights with respect to the Property. Subject to the terms of this Agreement and any permitted encumbrances, Owner grants to Claimant the right of occupancy and use of the Property in accordance with applicable homestead law and the terms set forth herein.

2.2 The Parties intend for this Agreement to govern the respective rights of Owner and Claimant as to occupancy, possession, and any homestead exemption filings or claims. This Agreement does not transfer fee simple title unless expressly set forth in a separate deed or conveyance executed by Owner.

3. CONSIDERATION

In consideration of the mutual promises set forth herein and other good and valuable consideration, the Parties acknowledge the receipt and sufficiency of consideration in the amount of dollars, and other non-monetary consideration including continued occupancy, agreement to maintain the Property, and the undertakings set forth in this Agreement.

4. REPRESENTATIONS AND WARRANTIES

4.1 Owner represents and warrants that Owner is the lawful owner of the Property and has full power and authority to enter into and perform this Agreement, subject only to the encumbrances disclosed herein.

4.2 Claimant represents and warrants that Claimant currently occupies the Property as Claimant's principal residence and that all statements made to Owner regarding Claimant's occupancy and intent to claim homestead protection are true and accurate.

5. TAXES, ASSESSMENTS AND INSURANCE

5.1 Unless otherwise agreed in writing, Owner shall remain responsible for payment of all property taxes, assessments, and insurance premiums that constitute legal obligations of the Owner of record. If Claimant assumes payment of any such taxes or premiums, Claimant shall provide receipts or other evidence upon request.

5.2 Each Party shall maintain insurance coverage for its own liability exposure. Owner shall maintain hazard insurance as required by any mortgagee or lienholder.

6. MAINTENANCE, USE, AND REPAIRS

6.1 Claimant shall keep the Property in a reasonable state of cleanliness and repair and shall promptly notify Owner of any condition that threatens substantial damage to the Property. Major structural repairs shall be the responsibility of Owner unless caused by Claimant's gross negligence or willful misconduct.

7. RESTRICTIONS ON TRANSFER

7.1 Owner shall not sell, transfer, encumber, or otherwise convey any interest in the Property that would materially impair Claimant's rights under this Agreement without providing Claimant with prior written notice and obtaining Claimant's written acknowledgment of the effect of such transfer on the homestead rights, if any, unless otherwise required by operation of law.

8. ENCUMBRANCES; MORTGAGES

8.1 All existing mortgages, liens, and encumbrances affecting the Property as listed in the Known Encumbrances and Liens section shall remain in full force and effect. Claimant acknowledges that any homestead protection claimed by Claimant may be subject to the superior rights of a duly recorded mortgagee or lienholder to the extent permitted by law.

9. TERMINATION

9.1 This Agreement shall terminate upon the earliest of: (a) mutual written agreement of the Parties; (b) sale or transfer of the Property in accordance with Section 7; (c) abandonment of the Property by Claimant as determined by applicable law; or (d) final judicial determination that Claimant is not entitled to homestead protection.

10. DEFAULT AND REMEDIES

10.1 In the event of a material breach of this Agreement by either Party, the non-breaching Party shall be entitled to pursue all remedies available at law or in equity, including injunctive relief to preserve the homestead status or possession of the Property, specific performance, and recovery of costs and attorney's fees where permitted by law.

11. RECORDING

11.1 The Parties acknowledge that this Agreement may be recorded in the land records of the county in which the Property is located. The Parties agree to execute and deliver such further documents as may be necessary to effect recording and to give notice of the rights set forth herein.

12. NOTICES

12.1 All notices, demands, or other communications required or permitted under this Agreement shall be in writing and shall be delivered personally, by certified mail (return receipt requested), or by nationally recognized overnight courier to the addresses set forth below or to such other address as a Party may designate in writing.

13. GOVERNING LAW; DISPUTE RESOLUTION

13.1 This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflicts of law.

13.2 Prior to initiating litigation, the Parties agree to confer in good faith to resolve disputes arising under this Agreement. If the Parties cannot resolve a dispute within thirty (30) days after good faith negotiation, either Party may pursue any remedy available at law or equity.

14. MISCELLANEOUS

14.1 Entire Agreement. This Agreement, together with any recorded instrument executed pursuant hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

14.2 Amendments. This Agreement may be amended or modified only by a written instrument signed by both Parties.

14.3 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

14.4 Waiver. No failure or delay by either Party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof.

14.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

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