DIY Legal Forms

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Ownership Agreement

AGREEMENT made on [Date] by and between [Name] of [Address], hereinafter referred to as "First Party", and [Name] of [Address], hereinafter referred to as "Second Party", do hereby agree as follows:

WITNESSETH

First Party and Second Party agree to purchase together real estate property located at [Address] in the County of [County], State of [State], and upon the following terms and conditions:

1. The agreed upon purchase price for the above described property is [$------].

2. They will hold title as (tenants in common and/or joint tenants) in the name [Partners] only.)

3. They will each contribute to the down payment as follows: [Enumerate on down payment].

4. They will each contribute to the monthly payments of the mortgage and insurance as follows: [Enumerate on monthly payments].

5. They will each contribute to the payment of property taxes as follows: [Enumerate on payments for property taxes].

6. Should either party decide to end the relationship and should both parties decide to keep the house the parties have chosen [Name of a third party] to flip a coin for the right to buy the other parties share at fair market value, all payable in cash within [--] days of the accepted offer.

If the winning party can not pay cash in [--] days the losing party has the right to buy the house from the winning party for the same offered amount.

If neither party can afford to buy the house or they are simply not interested the house will be sold and the profits or liabilities split evenly between the parties.

7. If the parties can not arrive at a fair market value, said fair market will be determined by appraisal. A mutually agreed upon appraiser will be selected by the two parties or the two parties can each select and appraiser and the selected appraisers will pick an appraiser to do the appraisal.

8. On the death of one of the parties the surviving party has the right to purchase the deceased parties share from the estate of the deceased party at fair market value. Fair market to be determined as in paragraph 7.

9. If either party is unable to make his or her payments as they come due and the other party makes those payments, the parties have elected to treat the payments as follows:

[ ] Each payment will be treated as a personal loan which must be repaid with interest at the rate of [--%] percent. Each missed payment must be fully repaid within [MONTHS] months.

[ ] Each payment will increase the paying parties percentage of ownership by [--%] percent.

10. It is the express intention of the makers of this contract that this contract shall be binding upon their heirs and their estates.

11. Any dispute arising out of this agreement shall be mediated by a third person mutually acceptable to both of the parties to this agreement. The mediation shall be in good faith. If the mediation shall fail to resolve the conflict it shall be submitted to an arbitrator under the Rules of the American Arbitration Association or like organization in the City of [city], whose award may be reduced to judgment in any court of competent jurisdiction.

12. In connection with this Agreement and the transactions contemplated hereby, each party to this Agreement will execute and deliver any additional documents and perform any additional acts that may be necessary or appropriate to effectuate and perform its obligations under this Agreement and the transactions contemplated hereby.

13. This Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written.

14. This Agreement supersedes any prior written or oral agreements between the parties.

15. Neither this agreement nor any right or interest thereunder shall be assigned in any respect whatsoever.

16. This instrument contains all of the agreements of the parties. No oral or other statements shall be binding on either of the parties hereto.

17. Applicable Law. This Agreement shall be governed by the laws of the State of [State].

18. Time of The Essence. Time is the essence of this agreement.

IN WITNESS WHEREOF, the parties have executed this agreement the day and year as first above written at [City], [State].

Signature:

[Name], First Party

Signature:

[Name], Second Party

This Section for Notary:

Acknowledgment

STATE OF -------)

) ss: [date]

COUNTY OF ------)

On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

[signature]

[Name of Notary Public]

My commission expires: [date]

(Seal)