Agreement between Parties Living Together but Remaining Unmarried with Regard to Distribution of Proceeds upon Sale of Residence
What is this form?
The Agreement between Parties Living Together but Remaining Unmarried with Regard to Distribution of Proceeds upon Sale of Residence is a legally binding document that outlines how proceeds from the sale of a shared residence will be divided between two parties who are cohabiting but not married. This form is distinct from other property agreements due to its focus on reimbursement for initial payments made by one party, ensuring that both parties are clear on their rights should they choose to sell their home together.
What’s included in this form
- Identification of the parties involved (male and female partners).
- Details about the residence, including its legal description and the date cohabitation began.
- Reimbursement clause specifying payment to the party who made the down payment and closing costs upon sale.
- Conditions for resolving disputes through binding arbitration.
- Provisions for attorney fees in case of legal disputes.
- Signature lines for both parties and notarization requirements.
When to use this form
This form should be utilized when two partners are living together in a residence but have not formalized their relationship through marriage. It clarifies financial arrangements related to the sale of the property, particularly in situations where one partner has invested more in the property purchase. It is essential to have this agreement in place to avoid potential disputes and misunderstandings regarding financial contributions and proceeds distribution in the event of a sale.
Who can use this document
- Unmarried couples living together who have purchased a residence.
- Partners seeking to clarify financial responsibilities and rights regarding their shared property.
- Individuals who wish to establish a legal agreement to prevent disputes over property sale proceeds.
Steps to complete this form
- Identify the parties involved by entering their full names and addresses.
- Specify the address of the residence along with its legal description.
- Enter the down payment and closing costs amounts paid by one party.
- Detail the reimbursement amount to be paid upon the sale of the residence.
- Provide signatures of both parties and date the agreement.
Does this document require notarization?
To make this form legally binding, it must be notarized. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Avoid these common issues
- Failing to include accurate legal descriptions of the property.
- Not fully understanding the terms before signing.
- Omitting to have the document notarized if required by local law.
- Not seeking separate legal advice from attorneys.
Why use this form online
- Convenient access to template forms that can be downloaded instantly.
- Editability allows you to customize the form to fit your specific situation.
- Reliability, as forms are drafted by licensed attorneys to meet legal standards.
Summary of main points
- This agreement clarifies how proceeds from the sale of a shared residence will be divided.
- It is essential for unmarried couples to define their financial responsibilities regarding property sales.
- Always consult local laws to ensure compliance with state requirements.
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FAQ
Cohabitation agreements are legally binding contracts, provided that they are drafted and executed properly, and are signed as a deed. It is therefore essential to obtain legal advice before preparing an agreement.
Cohabitation agreements are similar contracts for unmarried spouses. These contracts allow you to make legal decisions about your rights in a relationship and decide how you want to arrange your finances if your relationship ends.
Cohabitation is an arrangement where two people are not married but live together. They are often involved in a romantic or sexually intimate relationship on a long-term or permanent basis.More broadly, the term cohabitation can mean any number of people living together.
In both types of agreements, the disclosure requirements are onerous but necessary. Full disclosure includes things such as income tax returns, pay stubs, banks account and credit card statements, RRSP/investment statements and a statutory declaration of all income, assets and debts, among others.
Split ownership costs fairly until the house sells until the property sells. The amount owed by each party is typically split by the percentage of ownership. If you own 50%, and your two co-owners each own 25%, then you'll need to cover half of all housing expenses while your co-owners split the remainder.
If a cohabiting couple splits up, they do not have the same legal rights to property as a married couple. In general, unmarried couples can't claim ownership of each other's property in the event of a breakup. This applies to big investments (such as a house) and smaller items (such as furniture).
Cohabitation is an arrangement where two people are not married but live together.
Example of Cohabitation Two single people meet at a university and live together to save on expenses and have a sexual relationship.
Sell the home and both of you move out. Arrange for one of you to buy the other out. Keep the home and not change who owns it. Transfer part of the value of the property from one partner to the other so that your children have somewhere to live.
