Real Estate HEA Document

REAL ESTATE HOME EQUITY AGREEMENT (HEA)

Parties

This Home Equity Agreement ("Agreement") is made effective as of by and between:

Property Identification

Agreement Terms

Provider will pay Owner a funding amount of in consideration for an equity participation equal to of the Net Appreciation as defined below. The initial cash payment at closing shall be , payable to Owner on the Closing Date of .

Net Appreciation means the difference between the Net Sale Proceeds at a Qualifying Disposition and the Baseline Value. Baseline Value equals the lesser of the fair market value of the Property on the Effective Date or the agreed valuation stated as .

Closing, Escrow and Disbursement

Closing shall occur on or before . All funds to Owner will be disbursed through escrow and may be subject to deductible closing costs and recording fees not to exceed .

Owner Representations and Covenants

Owner represents and warrants that Owner is the sole legal owner of the Property, there are no undisclosed liens, and Owner has full authority to enter this Agreement. Owner shall maintain property insurance with coverage amount of at least and shall timely pay property taxes and not create any material adverse liens against the Property without Provider's prior written consent.

Provider Covenants

Provider shall have no obligation to collect or service mortgage debt unless otherwise agreed. Provider may record a memorandum or other notice of this Agreement in the public land records to protect its rights. Provider shall not accelerate the repayment except as provided in this Agreement.

Disclosures and Acknowledgements

The Owner discloses the following known conditions (mark appropriate box):

Lead-based paint present: Yes No

Mold, water intrusion or fungal conditions: Yes No

Prior structural damage or major repairs: Yes No

Located in designated flood zone: Yes No

Default and Remedies

An Event of Default includes failure by Owner to maintain insurance, to pay taxes, to cure any material liens, unauthorized transfer of the Property, or breach of any material representation. Upon an Event of Default, Provider may enforce its remedies at law or equity, including specific performance, foreclosure of any security interest permitted under this Agreement, or monetary damages. Owner shall pay reasonable costs and attorneys' fees incurred in enforcing Provider's rights.

Notices

All notices under this Agreement shall be in writing and delivered to the addresses below by personal delivery, registered mail, or certified mail. Notices are effective upon receipt.

Governing Law; Entire Agreement

This Agreement shall be governed by and construed in accordance with the laws of the state where the Property is located. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral. Any amendment must be in writing and signed by both Parties.

Miscellaneous Provisions

Severability: If any provision is held unenforceable, the remaining provisions remain in full force. Waiver: A waiver of any default shall not be construed as a waiver of any subsequent default. Assignment: Neither Party may assign rights or obligations under this Agreement without the prior written consent of the other Party, except Provider may assign to an affiliate or successor in interest provided notice is given to Owner.

Acknowledgment and Certification

Each Party certifies under penalty of perjury that the information provided in this Agreement is true and correct to the best of the Party's knowledge, and that the Party has the authority to execute this Agreement. Owner acknowledges receipt of fair consideration described herein.

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