Equity Split Agreement Template With Partner In Washington
Description
Form popularity
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).
Washington State considers unmarried couples' properties as separate, so each party retains their own property unless a written agreement exists or until comingling in a community manner is shown.
An equity agreement, often referred to as a shareholder agreement or a shared equity agreement, is a legal contract that defines the relationship between a company and its shareholders. It specifies the rights, duties, and protections of shareholders, as well as the operational procedures of the company.
Let's say your home has an appraised value of $250,000, and you enter into a contract with one of the home equity agreement companies on the market. They agree to provide a lump sum of $25,000 in exchange for 10% of your home's appreciation. If you sell the house for $250,000, the HEA company is entitled to $25,000.
Ownership agreements go by various names depending on the kind of entity you've created for your business. In a partnership, it's called a "partnership agreement." In an LLC, it is called an "operating agreement." And corporations have "bylaws" as well as perhaps a "shareholders' agreement."
Contents Researching the relevant laws and regulations. Establishing the purpose of the agreement. Identifying the parties involved in the agreement. Determining the co-owners' rights and responsibilities. Drafting the agreement. Outlining the financial contributions and distributions of the co-owners.
Outlining the rights and obligations of each party Agree on what rights and responsibilities each party will have. Ensure that each party understands and agrees to the duties and obligations assigned to them. Identify what each party is responsible for, including any financial contributions.
