Steadworth's Home Wealth Share program is based on a mutually beneficial partnership between the homeowner and Steadworth. Both parties are expected to comply with the terms and conditions outlined in the Home Wealth Share Agreement. However, in the event of non-compliance, certain consequences and remedies may apply.
What Constitutes Non-Compliance?
Non-compliance with the agreement can occur in various ways, including:
Failure to make mortgage payments: This is a serious breach of the agreement, as it puts Steadworth's investment at risk.
Failure to maintain the property: Neglecting necessary maintenance and repairs can negatively impact the value of the property and Steadworth's investment.
Unauthorized rental or sale of the property: Renting or selling the property without Steadworth's consent is a violation of the agreement terms.
Failure to provide required information or documentation: Homeowners are obligated to provide Steadworth with necessary information and documentation throughout the agreement term.
Violation of other agreement terms: This may include failing to obtain required insurance coverage or making unauthorized changes to the property.
Consequences of Non-Compliance
The consequences of non-compliance can vary depending on the severity of the breach and the specific terms of the agreement. Potential consequences may include:
Steadworth exercising its option to purchase an ownership interest in the home:
In certain situations, Steadworth may have the right to purchase a predetermined percentage ownership interest in the home at fair market value, as determined by an independent appraisal. This percentage is outlined in the Home Wealth Share Agreement and typically ranges from 20% to 25%.
Acceleration of the agreement: Steadworth may demand immediate repayment of its investment and share of the appreciation.
Legal action: Steadworth may pursue legal action to enforce the terms of the agreement and recover any losses incurred due to non-compliance.
Remedies Available to Both Parties
Both the homeowner and Steadworth have certain remedies available in case of non-compliance:
Homeowner: The homeowner may have the right to cure the default within a specified timeframe, depending on the nature of the breach. They may also have the right to dispute Steadworth's actions through the agreed-upon dispute resolution process.
Steadworth: Steadworth may exercise its rights under the agreement, such as demanding repayment, exercising its purchase option, or pursuing legal action.
It is important to carefully review the Home Wealth Share Agreement and understand the consequences of non-compliance. If you have any questions or concerns about your obligations under the agreement, please contact Steadworth's team for clarification.
By adhering to the terms of the agreement and fulfilling your obligations, you can ensure a successful and mutually beneficial partnership with Steadworth.