The Home Wealth Share Agreement is a legally binding contract between you and Steadworth that outlines the terms and conditions of your participation in the Home Wealth Share program. It is essential to carefully review and understand this agreement before signing, as it defines your rights and obligations throughout the program's duration.
Purpose of the Agreement
The Home Wealth Share Agreement serves to:
Establish a clear understanding of the co-investment partnership between you and Steadworth.
Define the terms of Steadworth's down payment investment in your home.
Outline the process for calculating and distributing the Wealth Share Proceeds upon sale or refinance of the property.
Specify the rights and responsibilities of both parties throughout the agreement term.
Key Elements of the Agreement
The Home Wealth Share Agreement typically includes the following key elements:
Contract Term and Down Payment Split: These sections specify the duration of the agreement and the percentage of the down payment contributed by both you and Steadworth.
Wealth Share Percentages: This section outlines the predetermined percentages of the home's future appreciation that will be shared between you and Steadworth.
Maintenance and Repair Responsibilities: This section clarifies your responsibility for maintaining the property and performing necessary repairs.
Restrictions on Renting or Selling: This section outlines any restrictions on renting or selling the property during the contract term.
Events of Default and Remedies: This section defines what constitutes an event of default and outlines the remedies available to both parties in such situations.
Dispute Resolution Procedures: This section specifies how any disputes arising from the agreement will be resolved, typically through arbitration.
Your Rights and Obligations
As a homeowner participating in the Home Wealth Share program, you have the following rights and obligations:
Rights:
You retain full ownership and control of the property.
You enjoy all the benefits of homeownership, including the right to occupy the property, make changes and renovations, and benefit from potential appreciation.
You have the right to sell or refinance the property at any time, subject to the terms of the agreement.
You have the right to repurchase Steadworth's investment and Wealth Share at any time, based on a third-party appraisal.
Obligations:
You are responsible for making your monthly mortgage payments on time.
You are responsible for maintaining the property in good condition and performing necessary repairs.
You must comply with all applicable laws and regulations related to the property.
You must notify Steadworth of any major life events that could impact the agreement, such as changes in marital status, death of a signatory, or plans to sell or refinance the property.
You are responsible for paying Steadworth's original investment and Wealth Share Proceeds upon termination of the agreement, as outlined in the contract.
Understanding your rights and obligations under the Home Wealth Share Agreement is crucial for ensuring a successful and mutually beneficial partnership with Steadworth. We encourage you to carefully review the agreement and seek clarification from our team if you have any questions.