Legal Question in Real Estate Law in California

Re: Shared Equity

Every equity share agreement is different. You should get a contract written by an attorney detailing the terms of the agreement and how proceeds will be distributed later. I do these all of the time.

Re: Shared Equity

Truly a wise decision. As Mr. Koenen points out, form agreements of the fill-in-the-blanks kind won't work, because, as in a prenuptial agreement, the circumstances vary so greatly from situation to situation.

At minimum, the agreement should identify the parties and the property, contributions to down payment, how title will be held, method and terms of financing, whose credit will be relied upon, how and by whom the property will be managed, how deficits are made up or losses borne, rights of the co-owners to occupy part of all of the property, the maintenance and/or improvement budget (including timing), payment of property taxes, rental policies (if property is held for income), when to sell and by what realtor and at what minimum price, division of profits, allocation of depreciation and interest costs for tax purposes, whether a partnership is created, whether the right of partition is waived, right of first refusal to buy out a withdrawing co-owner, what happens if someone dies or declares bankruptcy, and on and on.

Re: Shared Equity

I would need more facts, but I'm sure I can help you with that. You just need some good contracting.