Gift Of Equity Contract Example For Seller In Wayne
Category:
State:
Multi-State
County:
Wayne
Control #:
US-00036DR
Format:
Word;
Rich Text
Instant download
Description
The Gift of Equity Contract Example for Seller in Wayne serves as a legal agreement between a seller (Alpha) and a buyer (Beta) to facilitate the transfer of property ownership with an equitable consideration. This form details the purchase price, down payment, and financing arrangements, emphasizing the terms under which both parties will reside and hold title as tenants in common. Key features include provisions for occupancy, maintenance responsibilities, and the distribution of proceeds upon resale. The document outlines the necessary formalities, including the formation of an Equity-Sharing Venture, which governs capital contributions and potential loans between parties. It also covers contingencies such as the death of a party, governing law, and mandatory arbitration for disputes. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who assist in real estate transactions, as it provides a clear structure for agreements involving equity sharing arrangements. By following the outlined instructions, users can customize the agreement to suit specific transactions, making it an essential resource in real estate law practices.
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FAQ
The seller must obtain an official home appraisal to ascertain fair market value and also sign a gift letter that describes the buyer-seller relationship and states that the equity is a gift the buyer is not obligated to repay. The buyer must follow the typical process for buying a home.
For example, if you own a home worth $300,000 and sell it to a family member for $200,000, they've received a gift of equity of $100,000. A gift of equity can occur if a home is given away for no compensation or if a discount is offered on its value.