Co-Owned Property Buyout Agreement (Template and Helpful Info)
When co-owners of real estate located in Oklahoma want to terminate their co-ownership, the parties have a few options. For an overview of the options, see our article on partition and forcing a sale of co-owned property.
A legally enforceable buyout agreement is a great option for getting one co-owner to commit to purchasing the rights of an exiting/selling co-owner. This allows one co-owner to buy out the other parties and keep the property. The process is simple – the parties have an agreement prepared, set a date and time for closing or deed signing, then record the deed with the county clerk when signed.
Avenue Legal Group prepares custom buyout agreements for parties wishing to avoid a partition lawsuit or resolve a partition lawsuit, sells basic buyout agreement templates for parties wanting a basic form agreement, and handles closings at our office or remotely.
What terms are required to be included in a real estate buyout agreement?
- Define the parties, who is selling, and who is buying
- Describe the real estate by legal description and street address
- State the details of the transaction, including the purchase price and timing
What other details should be considered when buying out a co-owner?
- How is the title to the property currently held? Are the parties joint tenants with right of survivorship or tenants in common?
- What are the financial realities of the ownership? If the co-owners have a mortgage on the property, approval from the lender may be required before any change in ownership occurs.
- Does the buyer want title insurance? Will they be required to obtain title insurance under the terms of a mortgage?
Other helpful information:
- LLC’s are great vehicles for co-owning property and help protect the co-owners from legal liability. See our Oklahoma LLC Guide here.
- If the co-ownership situation is between a husband and wife, or a right of survivorship exists, the surviving owner may need to prepare and file an affidavit of surviving joint tenant before having the ability to sell the property or transfer title.
- If a title issue is never cured, a quiet title action may be required before the title ownership will be marketable or insurable by a title insurance company.
- Buyout agreements are just one type of common real estate contract forms. Our firm regularly prepares custom agreements which are helpful for resolving unique issues in co-ownership situations.
- The continuing owner (buying out the exiting owner) can likely feel confident enough to skip title insurance and complete a fast closing – because they are already an owner, they may not need a new title insurance policy.
Contact Avenue Legal Group to discuss a buyout agreement, partition action, or termination of joint tenancy or co-ownership.
Basic Buyout Agreement Template: Want to purchase a buyout agreement template? Contact our firm to ask about pricing and other details.
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