Financial Contributions and Default Clause

1. Financial Contributions

A. Monthly Financial Contributions

How much will each Co-Owner contribute per month toward mortgage, taxes, insurance, utilities, and maintenance?

Co-Owner One:

Co-Owner Two:

Co-Owner Three (if applicable):

Co-Owner Four (if applicable):

B. Payment Due Date

Payments will be due on the day of each month.

C. Payment Method

How will payments be made?

Bank transfer

Joint account

Other

Please Specify(Required)

2. Non-Payment of Financial Contributions

A. Default Notice Timeline

Defaulting Party

How many days after the missed payment will the Defaulting Party receive a written notice of default?

B. Deadline to Cure Default

How many days does the Defaulting Party have to make up the overdue payment after receiving the notice?

C. Late Penalty

What daily penalty will apply for overdue payments?

Penalty:

D. Payment by Remaining Co-Owners

If the Defaulting Party’s payment is not made, the remaining Co-Owners may cover the amount. What happens to the Defaulting Party’s unpaid share?

Accrues interest at __% annually until repaid.

Proportionally reduces their ownership share dollar-for-dollar.

E. Persistent Default

How many consecutive months of non-payment trigger a forced buyout?

Months:

3. Emergency & Default Escrow Fund

A. Monthly Contributions to Escrow

How much will each Co-Owner contribute monthly to the escrow fund?

Co-Owner One:(Required)

Co-Owner Two:(Required)

Co-Owner Three (if applicable):

Co-Owner Four (if applicable):

B. Total Monthly Escrow Contribution

Add up all Co-Owner contributions.

Total:

C. Purpose of the Escrow Fund

What expenses will the escrow fund cover?

Cover missed payments (e.g., mortgage, taxes, insurance, utilities)

Emergency repairs for property safety or integrity

Other

Please Specify(Required)

D. Conditions to Access the Escrow Fund

What percentage of Co-Owners’ approval is needed to use the escrow fund?

Approval Percentage:

E. Replenishing the Escrow Fund

How long do Co-Owners have to replenish the fund after a withdrawal?

4. Forced Buyout for Persistent Default

A. Trigger for Buyout

If a Co-Owner defaults and the escrow fund is exhausted, the remaining Co-Owners may trigger a forced buyout. Confirm that the Exit Strategy Clause procedures will be followed.

B. Default Notice Timeline

Restate how many days’ notice the Defaulting Party will receive before triggering the buyout process:

5. Escrow Account Management

A. Escrow Account Holder

Who will manage the escrow account?

One designated Co-Owner

Joint management with equal oversight from all Co-Owners.

Designated Co-Owner(Required)

B. Bank Account Information

Where will the escrow account be held?

Bank Name Bank Location

C. Record Keeping

How often will account transactions and balances be shared with all Co-Owners?

Monthly

Quarterly

Other

Please Specify(Required)

Protect Your Investment, Secure Your Partnership