Among Beneficiaries Establishing Co-ownership
Among Beneficiaries Establishing Co-ownership
The agreement among beneficiaries establishing co-ownership is normally made with all the beneficiaries of a trust agreement of land. This agreement is made with a corporation who acts as a trustee as per the laws of the state.
In this agreement it is stated that the parties share of whatever income or profits or earnings there arise out of the property as per the percentages stated in the agreement. The parties also will need to open a checking account and the name under which the account is to be created is also mentioned. It also states that the account needs signatures of any two of the parties in order for a withdrawal to be made. Also, if there are cash receipts, this is to be deposited into the account and all the expenses with regards the property such as the taxes, legal fees, insurance, accounting fees etc will be paid out of the same account.
It states that all the income, the expenses, withdrawals, assets and liabilities including the advances are to be maintained by the accounts who are named and that is to be maintained as per the accounting principles and with full and accurate books of accounts.
It also says that none of the parties can obligate others for any liabilities with regards the property nor can they make any deals on behalf of the others and they only are liable for their share of the purchase price, the special assessments, taxes, insurance, advances and other such expenses.
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State of _________
County of _________
This agreement, dated _________, is made between _________, of _________[address], _________, of _________[address], and _________, of _________[address], who are the beneficiaries under a certain land trust agreement dated _________, with _________, a corporation organized and existing under the laws of the State of _________, as trustee. The principal of the land trust is certain real estate situated in the County of _________, State of _________, more particularly described in Exhibit _________, which is attached and made a part of this agreement.
In connection with the trust agreement, the parties agree as follows:
1. The parties shall share in the earnings, income, and profits of the property in the following proportions: _________[set forth percentage of participation of each party].
2. The parties shall open a checking account with _________[bank] under the name of _________, which account shall require the signature of _________[any two] of the parties for withdrawal. All cash receipts from the property shall be deposited in the account, and all expenses of operating the property, including taxes, insurance, legal fees, accounting fees, and all other necessary disbursements, shall be paid from the account.
3. Full and accurate books of account, showing all income, expense advances, withdrawals, assets, and liabilities shall be maintained by _________[accountants] in accordance with generally accepted principles of accounting.
4. The property has been [or is being] acquired solely for investment purposes. No party shall have any authority to obligate the others for any expense or liability in connection with it, or to contract or deal with the property on behalf of the others in any manner. Each party shall be liable only for his or her share of the purchase price, taxes, special assessments, public liability insurance, and other expenses related to the property.
5. Failure by a party to contribute his or her share of the money necessary to accomplish any of the purposes for which the property is held or to pay any expenses or liability in connection with his or her share shall at the option of the majority in interest of the other parties, create a debt from the delinquent party to the other parties in the amount of the liability, plus interest at the rate of _____% annually until paid, collectible either by suit or by charging it against any income or proceeds of sale due then or in the future to the delinquent party. A majority in interest of the other parties may, if the debt failure shall continue for _________[number] months or more, consider that failure as an offer by the delinquent party to sell his or her interest under Paragraph 6.
6. In the event any party desires to sell, transfer, donate, or otherwise dispose of all or any part of his or her interest, he or she shall deliver written notice of this desire to the other parties, specifying the interest he or she desires to dispose of. In the event this disposition is to be made to any party other than _________[identity of parties to be exempted, if any], then and in that event, each of the other parties shall have the option to buy, and the offering party shall be obligated to sell to each, an interest in the same proportion his or her individual interest bears to the total interest of the other parties and at a price equal to the value of the offering party’s interest at its then book value as determined by _________[accountants].
In the event the offering party has received a bona fide offer from a third party for any part of his or her interest, which offer he or she desires to accept, he or she shall notify the other parties in writing of the terms and conditions of the offer and the other parties shall have the right, if they so elect, to purchase within _________[number] days from the receipt of the notice on the same terms and conditions as so offered. In the event all or any of the parties desire to so purchase, the offering party’s interest shall be prorated among those desiring to purchase on the basis of their respective interest.
In the event none of the other parties desire to purchase, the offering party may sell to the proposed buyer after the expiration of the _________[number] days’ acceptance period, provided the sale is completed within _________[number] days.
7. In the event of the death of a party or the appointment of a personal representative, the sale of the interest of the deceased shall be in the manner prescribed in the preceding paragraph.
8. This agreement shall be binding on the parties, their heirs, personal representatives, successors and to parties to whom it may be assigned in accordance with its terms and conditions. All additions or amendments must be approved by all of the parties.
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