Some people are interested in owning a single property, and they are planning to collect the fund and then buy it. Some people might spend the same amount of money to buy the property, and some others have a more significant portion. Therefore, they need the real estate equity share agreement to record the right part of the ownership.
If you are planning to make a basic equity sharing agreement, you are on the right page because we have the free real estate equity share agreement templates that you can edit and customize.
Steps In Making A Real Estate Equity Agreement
Creating the agreement is not that difficult. There are 5 steps that you can follow. Check the guidelines bellow.
- Details of the parties – Every agreement will consist of at least two parties that are involved in the transaction. All the parties who want to own the property should agree to make a contract and should reveal the details needed in the document.
Once you have completed these details, you can move to draft the document. The first detail you should write is the precise title of the content. The title should represent the contents and then followed the details of all parties involved. Write down the legal names, address, contact person, etc.
- Write down the details of the properties – The next step you need to write is the property details. The property details include the name or title of the property, location, unit number, property type, name, contact, address, and others.
- State the valuation and also equity – What it means with the cost is the market price of the property. Generally, it gets decreased after it has been bought. The next is the equity split. This is the most crucial part of the document. The clause in the section should reveal the amount of share each party that will be getting. Negotiate it with your business partner and then input it to the agreement when it is finalized.
- State the earnest money, as well as the price – The purchase price means the credit amount that has been paid by the original owner. But if the property you are purchasing has now the previous owner, then the purchase price will be the price that involved the parties in the agreement.
- Non compete clause – The last is about limitations that discusses the non-compete agreement. This should state the benefit of buying the property, and these clauses will only affect to parties that have signed the deal. Besides, this also cannot be delegated to another party when it agrees. Furthermore, you also need to mention the consequences that will be faced by each party when they breach the agreement.
That is all we have about how to agree correctly. If you are planning to buy a property, but with the help of some parties, then you need to download this agreement. Make sure you always discuss it first and then draft the points. Use the advice of an attorney to make it a legal document.