Shared Equity Agreements For Business In Pima

State:
Multi-State
County:
Pima
Control #:
US-00036DR
Format:
Word; 
Rich Text
Instant download

Description

The Equity Share Agreement is designed for shared equity arrangements concerning residential properties in Pima, providing a framework for investment between parties, known as Alpha and Beta. Key features include six main areas: the purchase price, investment amounts, distribution of proceeds, parties' roles in maintenance, and governing law. This form outlines the contributions of each party in cash and the percentages of ownership, while also defining the responsibilities for payment of taxes and utilities. Furthermore, it includes provisions for managing the sale of the property and the division of proceeds, emphasizing mutual participation in any appreciation in property value. Legal professionals and their clients will find this document useful for structuring investments in real estate, ensuring clarity in ownership shares, and outlining procedures in case of disputes or death. Additionally, instructions for filling and editing the form are implicit, such as ensuring accurate completion of financial details and signatures from both parties, which attorneys and legal assistants can facilitate easily. The form serves as an essential tool for real estate transactions within shared equity agreements, safeguarding the interests of all parties involved.
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FAQ

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).

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 business can ``give'' equity any time its articles of incorporation or anti-dilution agreements allow. The IRS requires the business to report the fair market value of the gift of equity if it goes to non-employees . If equity goes to employees it is considered compensation and is reported on their w2.

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Shared Equity Agreements For Business In Pima