We understand that considering the possibility of a homeowner's passing can be difficult. However, it's important to be aware of how the Home Wealth Share Agreement is impacted in such an event and the options available to the homeowner's heirs or estate.
Impact on the Agreement
The Home Wealth Share Agreement remains in effect even after the death of a homeowner. The agreement is tied to the property itself, and the obligations and rights under the agreement transfer to the homeowner's heirs or estate.
Responsibilities of Heirs or Estate
The homeowner's heirs or estate assume the responsibilities outlined in the Home Wealth Share Agreement. This includes:
Maintaining the property: Ensuring the property is kept in good condition and necessary repairs are completed.
Making mortgage payments: Continuing to make timely mortgage payments to avoid default.
Communicating with Steadworth: Informing Steadworth of the homeowner's passing and discussing options for fulfilling the agreement terms.
Options Available to Heirs or Estate
The heirs or estate have several options for fulfilling the terms of the Home Wealth Share Agreement:
Selling the Property: The heirs or estate can choose to sell the property and use the proceeds to repay Steadworth's original investment and its share of the appreciation, as outlined in the agreement.
Refinancing the Mortgage: If the heirs or estate wish to keep the property, they may choose to refinance the mortgage to access cash and use the funds to repay Steadworth.
Buying Out Steadworth's Investment: The heirs or estate can choose to buy out Steadworth's investment and share of the appreciation based on a current market valuation of the property. This option allows them to retain full ownership of the home.
Negotiating with Steadworth: The heirs or estate can discuss their situation with Steadworth and explore alternative solutions or potential modifications to the agreement terms.
Grace Period
Steadworth understands that the passing of a homeowner can be a difficult time for their loved ones. Therefore, we offer a grace period to allow the heirs or estate time to review the agreement, assess their options, and make informed decisions.
It's important for homeowners to discuss their Home Wealth Share Agreement with their family and loved ones to ensure they are aware of the agreement and its implications in the event of their passing. This can help facilitate a smooth transition and ensure that the heirs or estate are prepared to fulfill the terms of the agreement.