Real Estate Prenup Test - Real Estate Prenup

1 .Co-Owner Information

iWhy This Matters:

Each co-owner’s legal name and property address should match official records to ensure the agreement is legally binding and accurately reflects ownership details.

1.1 Full Legal Names of Co-Owners

Co-Owner One(Required)

Co-Owner Two(Required)

Co-Owner Three (if applicable)

Co-Owner Four (if applicable)

1.2 Property Address

Address(Required)

2. Ownership Structure

iWhy This Matters:

Selecting the right ownership type and percentage determines how the property is shared and what happens if a co-owner wants to sell, passes away, or exits the agreement.

2.1 Ownership Type

iOwnership Type

Tenancy in Common: Co-owners can own different shares and transfer ownership freely.
Joint Tenancy: Equal ownership with the right of survivorship (ownership transfers to surviving co-owners if one passes away).

Ownership will be held as (choose one)

Tenancy in Common

Joint Tenancy

Other

Please Specify

2.2 Ownership Percentage

Indicate each Co-Owner's percentage of ownership.

iOwnership Percentages

Decide if ownership is based on financial contributions or another agreement.

Co-Owner One

Co-Owner Two

Co-Owner Three

Co-Owner Four

2.3 Financial Contributions

How much will each Co-Owner contribute toward the down payment and closing costs?

iFinancial Contributions

Down payments and closing costs may determine ownership percentages unless agreed otherwise.

Co-Owner One

Co-Owner Two

Co-Owner Three (if applicable)

Co-Owner Four (if applicable)

3. Possession and Use

Will there be designated exclusive areas (e.g., sleeping quarters, offices)?

iWhy This Matters:

Establishing exclusive vs. shared areas, guest policies, and leasing rules helps prevent conflicts.

Equal Access or Exclusive Areas

If co-owners live in the property, decide if certain rooms are private (e.g., bedrooms, offices).

Guest Policy

Setting limits (e.g., 7 nights without approval) prevents long-term, unauthorized guests.

Vacancy & Leasing

If a co-owner moves out for more than 30 days, decide if they can rent their portion

3.1 Equal Access or Exclusive Areas

Yes (List areas for each Co-Owner below)

Equal Access or Exclusive Areas

If co-owners live in the property, decide if certain rooms are private (e.g., bedrooms, offices).

Co-Owner One

Co-Owner Two

Co-Owner Three (if applicable)

Co-Owner Four (if applicable)

3.2 Guest Policy

How many nights can overnight guests stay without written consent?

iGuest Policy

Setting limits (e.g., 7 nights without approval) prevents long-term, unauthorized guests.

Maximum Nights Allowed

3.3 Vacancy

If a Co-Owner vacates the Property for more than 30 days.

iVacancy & Leasing

If a co-owner moves out for more than 30 days, decide if they can rent their portion

Do you allow them to lease their portion of the Property?

Yes, with written consent from other Co-Owners

4. Financial Responsibilities

iWhy This Matters:

Clearly defining how payments are split ensures fairness and financial stability.

4.1 Monthly Contributions

How will monthly mortgage, taxes, and insurance payments be split?

iMonthly Contributions

Choose to split payments equally or based on ownership percentages.

How will monthly mortgage, taxes, and insurance payments be split?

Based on ownership percentages

Equally among all Co-Owners

4.2 Monthly Utility and Maintenance Costs

How will costs for utilities (e.g., water, gas, electric) be split?

iUtility & Maintenance Costs

Utility and routine maintenance costs should be split based on a fair method.

How will costs for utilities (e.g., water, gas, electric) be split?

Equally

Based on ownership percentages

4.3 Emergency and Optional Repairs

Do you want to establish a joint emergency repair fund?

iEmergency & Optional Repairs An emergency repair fund helps avoid last-minute financial strain.

Do you want to establish a joint emergency repair fund?

Yes

Monthly Contribution per Co-Owner

4.4 Optional Repairs and Improvements

Do all Co-Owners need to agree in writing for optional repairs or improvements?

iOptional Repairs & Improvements Decide if all co-owners must approve non-essential renovations.

Do all Co-Owners need to agree in writing for optional repairs or improvements?

Yes

5. Transfer Restrictions

iWhy This Matters:

Limiting who can buy into the property prevents ownership disputes.

5.1 Right of First Refusal

If a Co-Owner wishes to sell their share, how many days do the remaining Co-Owners have to purchase the share?

iRight of First Refusal

If a co-owner sells, the others get first priority to buy.

Days to Respond

5.2 Price for Buyout

How will the buyout price be determined?

iBuyout Price

The price can be based on appraised value or another method agreed upon.

5.2 Price for Buyout

Appraised Value (requires two appraisals)

Other

Please Specify

6. Exit Strategy

6.1 Holding Period

Is there a minimum holding period before a Co-Owner can force a sale or buyout?

iWhy This Matters:

Setting an exit process in advance prevents legal and financial issues.

6.1 Holding Period

Yes

Holding Period

iHolding Period

A minimum holding period (e.g., 5 years) prevents forced early sales.

Years

6.2 Sale Process

How will the Property be sold if a sale is triggered?

Initial Listing Price: Appraised Value

iSale Process

Establish a fair market price and price reduction schedule for selling the property.

Price Reductions

Every xxx days if no offers are received

6.3 Competitive Buyout

If multiple Co-Owners want to purchase a selling Co-Owner’s share, what is the minimum bid increment for competitive buyout?

iCompetitive Buyout

If multiple co-owners want to buy a selling co-owner’s share, set a minimum bid increment to ensure fairness.

Minimum Bid Increment

7. Death of a Co-Owner

7.1 Buyout Option

Do the surviving Co-Owners have the first option to buy out the interest of the deceased Co-Owner?

iWhy This Matters:

A plan for what happens to a deceased co-owner’s share avoids legal disputes.

Buyout Option

Decide if surviving co-owners get priority to buy out the deceased co-owner’s interest.

7.1 Buyout Option

Yes

7.2 Successor Co-Owner Restrictions

Can the successor Co-Owner occupy the Property without written consent from surviving Co-Owners?

iSuccessor Co-Owner Restrictions

Determine whether heirs can automatically move in or require approval.

7.2 Successor Co-Owner Restrictions

Yes

8. Dispute Resolution

8.1 Mediation and Arbitration

How do you want to handle disputes?

iWhy This Matters:

Defining how to handle disagreements can save time, money, and stress.

Mediation & Arbitration Mediation helps resolve disputes amicably, while arbitration is legally binding.

8.1 Mediation and Arbitration

Mediation followed by binding arbitration

Legal action

8.2 Mediation Timeline

How soon must mediation be scheduled after a dispute arises?

iMediation Timeline

Set a clear deadline for mediation to avoid prolonged disputes.

Timeline for Mediation xxx days

8.3 Arbitration Rules

Which arbitration provider do you want to use?

iArbitration Rules

Choosing a reputable arbitration provider ensures fair decision-making.

Provider

9. General Provisions

9.1 Amendments

Do all Co-Owners need to agree in writing to amend this Agreement?

iWhy This Matters:

General provisions help keep the agreement fair and adaptable over time.

Amendments

Require unanimous or majority approval for changes to the agreement.

9.1 Amendments

Yes

9.2 Jurisdiction

What state’s laws will govern this Agreement?

iJurisdiction

Specify which state’s laws govern the agreement.

State

IN WITNESS WHEREOF

The Co-Owners have executed this Agreement as of the Effective Date

Co-Owner One

Date

MM slash DD slash YYYY

Co-Owner Two

Date

MM slash DD slash YYYY

Co-Owner Three

Date

MM slash DD slash YYYY

Co-Owner Four

Date

MM slash DD slash YYYY

Full Name

First

Protect Your Investment, Secure Your Partnership