Parties agree in this form that if the Residence is ever sold, the party who paid the down payment and closing costs when the Residence was originally purchased should be reimbursed from the net sales proceeds first. Consideration should be given to recording this Agreement with the appropriate county clerk and recorder of deeds.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
California Agreement between Parties Living Together but Remaining Unmarried with Regard to Distribution of Proceeds upon Sale of Residence, also known as a "Cohabitation Agreement" or "Domestic Partnership Agreement," is a legal document that outlines the terms and conditions related to the distribution of proceeds upon the sale of a shared property for couples who live together but choose to remain unmarried. This agreement is designed to protect the rights and interests of each party in the event of a breakup or the sale of the residence. In California, where cohabitation is fairly common, entering into a Cohabitation Agreement can be a prudent decision for unmarried individuals who invest in a property together. Without such an agreement, the distribution of proceeds from the sale of the residence may be subject to general property laws, which often favor the legal owner or can make the division more complicated and contentious. The California Agreement between Parties Living Together but Remaining Unmarried with Regard to Distribution of Proceeds upon Sale of Residence typically includes the following key provisions: 1. Ownership Share: It specifies the percentage of ownership that each party holds in the shared property. This ensures that the distribution of proceeds is proportionate to the ownership interest, especially in cases where one party contributes more to the purchase or maintenance of the property. 2. Distribution of Proceeds: It outlines how the proceeds from the sale of the residence will be divided between the parties. This can be based on their ownership share or other arrangements made by mutual agreement, taking into consideration factors such as financial contributions, time spent living in the property, or any other relevant factors. 3. Mortgage and Expense Allocation: It clarifies how the mortgage payments and other expenses related to the residence will be divided between the parties. This ensures that each party's financial responsibilities are clearly defined and agreed upon to avoid disputes in the future. 4. Buyout Options: It may provide provisions for one party to buy out the other's ownership share in the event of a breakup or the decision to sell the residence. This allows one party to retain ownership of the property while compensating the other party for their share of the investment. 5. Dispute Resolution: It may include provisions for resolving disputes, such as through mediation or arbitration, instead of resorting to lengthy and expensive court proceedings. 6. Termination Clause: It specifies the conditions under which the agreement may be terminated, such as marriage, mutual consent, or a certain period of time agreed upon by the parties. It is important to note that this description is a general overview and should not be considered legal advice. California Agreement between Parties Living Together but Remaining Unmarried with Regard to Distribution of Proceeds upon Sale of Residence is a legally binding contract, and it is recommended to consult with a qualified attorney who specializes in family law or real estate law to ensure that the agreement is tailored to meet the specific needs and circumstances of the involved parties.
