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.
A New Jersey Agreement between Parties Living Together but Remaining Unmarried with Regard to Distribution of Proceeds upon Sale of Residence, commonly referred to as a cohabitation agreement, is a legally binding document designed to protect the interests of unmarried couples who share a residence and wish to establish the distribution of proceeds in case of a sale or separation. This agreement not only provides clarity on financial matters but also safeguards the parties involved by outlining their rights, responsibilities, and obligations. The main purpose of this agreement is to determine how the proceeds from the sale of the shared residence will be distributed between the parties. It carefully outlines the percentage or division of the sale proceeds that each party shall be entitled to receive, taking into consideration factors such as their contributions towards the purchase, mortgage payments, renovations, and other shared expenses related to the property. Additionally, it may address the allocation of any profits or losses resulting from the sale. In New Jersey, there are different types of agreements that can be tailored to the specific needs and circumstances of the parties involved. Some common variations include: 1. Basic Distribution Agreement: This type of agreement establishes a straightforward division of proceeds based on a predetermined percentage, which is typically determined by the contributions made by each party towards the purchase price and mortgage payments. 2. Equity-Based Agreement: In this scenario, the distribution of proceeds is based on the percentage of equity that each party holds in the shared residence. Equity is determined by considering not only the initial down payment and mortgage payments but also any improvements or renovations made during the cohabitation period. 3. Customized Agreement: This type of agreement allows the parties to create a unique and tailored arrangement that reflects their specific circumstances and intentions. It may include provisions regarding unequal contributions, reimbursement for certain expenses, or deal with scenarios where one party contributes more than the other towards the maintenance of the property. It is important to note that these agreements are not limited to the distribution of proceeds upon a sale but can also address other crucial matters such as the responsibility for ongoing mortgage payments, property taxes, repairs, and maintenance, as well as how disputes and conflicts will be resolved. To ensure the enforceability of the agreement, it is highly recommended that both parties seek independent legal advice and willingly disclose all relevant information, including financial assets and liabilities. Additionally, the document should be carefully drafted, clearly stating the intentions of the parties involved, and signed by all parties in the presence of a notary public. In conclusion, a New Jersey Agreement between Parties Living Together but Remaining Unmarried with Regard to Distribution of Proceeds upon Sale of Residence is a vital legal tool that provides clarity and protects the interests of unmarried couples who share a residence. By addressing the distribution of sale proceeds and other important matters, this agreement offers peace of mind and helps avoid potential conflicts or legal disputes in the future.
