How does an equity agreement work?

A company provides you with a lump sum in exchange for partial ownership of your home, and/or a share of its future appreciation. You don't make monthly repayments of principal or interest; instead, you settle up when you sell the home or at the end of a multi-year agreement period (typically between 10 and 30 years).

Agreement For Equity In Franklin

Q: What is a preferred equity agreement?

Preferred equity is part of the real estate capital stack in other words, a type of financing a sponsor or developer will employ as part of the aggregate capital raise for a given real estate project.

Category:

Real Estate - Contracts - Equity

State:

Multi-State

County:

Franklin

Control #:

US-00036DR

Format:

Instant download

Description

The Agreement for Equity in Franklin is a legal document designed for individuals entering into a joint investment venture for the purchase of residential property. This agreement clearly outlines the purchase price, down payment contributions, and the financial obligations of each party involved. It includes sections detailing the distribution of proceeds upon the resale of the property, the rights and responsibilities of each party regarding expenses, and provisions for improvements and maintenance of the property. Attorneys, partners, owners, associates, paralegals, and legal assistants will find this form useful for ensuring clear terms between investors, providing a framework for managing shared ownership, and handling potential disputes with provisions for arbitration. Additionally, the agreement specifies the implications of death for either party and can serve as a crucial tool for estate planning within the context of real estate investments. Legal professionals can guide clients through the filling and editing process, ensuring all parties understand their rights and obligations under the agreement.

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FAQ

The main disadvantage to equity financing is that company owners must give up a portion of their ownership and dilute their control. If the company becomes profitable and successful in the future, a certain percentage of company profits must also be given to shareholders in the form of dividends.

A company provides you with a lump sum in exchange for partial ownership of your home, and/or a share of its future appreciation. You don't make monthly repayments of principal or interest; instead, you settle up when you sell the home or at the end of a multi-year agreement period (typically between 10 and 30 years).

Preferred equity is part of the real estate capital stack — in other words, a type of financing a sponsor or developer will employ as part of the aggregate capital raise for a given real estate project.

Equity agreements allow entrepreneurs to secure funding for their start-up by giving up a portion of ownership of their company to investors. In short, these arrangements typically involve investors providing capital in exchange for shares of stock which they will hold and potentially sell in the future for a profit.

Equity agreements commonly contain the following components: Equity program. This section outlines the details of the investment plan, including its purpose, conditions, and objectives. It also serves as a statement of intention to create a legal relationship between both parties.

Today, Franklin Templeton is one of the largest managers of alternative assets globally. In 2024, the company acquired Putnam Investments, which brings complementary capabilities, expanded distribution resources and a track record of strong investment performance.