Exit Strategy Clause

1. Sale or Transfer of Ownership Interest

No Co-Owner may sell, transfer, or assign their ownership interest without the written consent of all other Co-Owners, except as provided.

B. Right of First Refusal

1. Proposed Purchase Price:

What price will the Selling Party propose for their share?

2. Payment Terms:

How will the purchase price be paid? (e.g., lump sum, installments over 6 months):

3. Timeline for Sale:

How many days do Remaining Parties have to respond?

4. Remaining Parties’ Rights:

Choose one:

Purchase the Selling Party’s share at the proposed price.

Negotiate alternative terms acceptable to all parties.

C. Multiple Interested Parties

If more than one Remaining Party wishes to purchase the share, how will ownership be split?

Existing ownership percentages

Mutual agreement among the Remaining Parties

D. Outside Sale Approval

If Remaining Parties decline to purchase, does the Selling Party require the buyer to agree to the existing Agreement?

Yes

No

2. Mandatory Sale or Buyout Process

Under what conditions may a mandatory sale or buyout occur? (Check all that apply):

By mutual agreement of all Co-Owners.

After a minimum holding period of years.

Material breach of this Agreement (e.g., missed payments, property misuse).

Years

B. Determining Fair Market Value (FMV)

1. How will the FMV be determined?

One independent, licensed appraiser.

Two independent, licensed appraisers (average of the two).

2. Appraisal Cost Responsibility:

Selling Co-Owner pays for the appraisal.

Cost is shared equally among all Co-Owners.

C. Buyout Terms

1. Timeline for Completing the Buyout:

How many days after FMV is determined will the buyout close?

2. Payment Terms:

How will the buyout be paid? (e.g., lump sum, installments over 12 months):

D. Sale of Entire Property

1. Initial Listing Price:

Based on FMV

Price

2. Price Reduction:

How many days until the price is reduced?

Percentage reduction per period:

How often will reductions occur?

3. Distribution of Sale Proceeds:

Enter ownership percentages

Co-Owner A:

Co-Owner B:

Co-Owner C (if applicable):

Co-Owner D (if applicable):

4. Outstanding Debts:

If the Selling Party owes shared expenses or contributions, how much will be deducted from their proceeds?

3. Financial Adjustments Upon Exit

A. Reimbursement for Contributions

Will the Selling Party be reimbursed for any of the following? (Check all that apply):

Necessary repairs

Approved improvements

Other documented contributions (e.g., property taxes paid on behalf of others):

Necessary repairs

Approved improvements

B. Deduction of Outstanding Debts

What amount (if any) will be deducted from the Selling Party’s proceeds for missed payments or obligations?

4. Dispute Resolution for Exit Terms

A. Mediation

Who will select the mediator for disputes?

1. Mediation Costs:

Shared equally among Co-Owners

Paid by the initiating Co-Owner

B. Arbitration

1. Arbitration Service:

Name of arbitration service:

2. Arbitration Costs:

Shared equally among Co-Owners

Paid by the initiating Co-Owner

Additional Considerations

A. Death of a Co-Owner

1. Buyout Option:

How many days will the surviving Co-Owners have to buy out the deceased Co-Owner’s share?

2. What happens if no buyout occurs?

The deceased’s share will pass to heirs, subject to this Agreement.

Other

Please Specify

B. Partition Waiver

2. How many years must all Co-Owners agree to waive the right to force a partition sale?

Protect Your Investment, Secure Your Partnership