Posted by Mira on December 08, 2004 at 10:15:15:
Hi Gene,
I found a partnership agreement online and we’re all looking it over and making our edits. We’ll use that as the foundation for whatever agreement follows. We’ve been entertaining a variety of solutions: Partnership, Trusts, LLC’s. It’s quite a process. Please let me know if you come up with anything on your end.
Thanks,
Mira
Agreement of Participation - Posted by Mira
Posted by Mira on December 04, 2004 at 14:21:44:
Hi there,
Myself and several others are embarking on a Real Estate “partnership” where the mortgage is in the name of one of us, the seller will remain in the property as a tenant and is also one of the “partners” and we each will have a 25% interest in the arrangement. The person holding the mortgage is interested in maintaining control of the administrative details as it is their credit on the line. They also want shared liability for the expenses of the property and protection against lack of performance by the other “partners”. The other partners are concerned about securing their interest in the property particularly if the mortgagee holds title and they want some recourse if the motgagee does not uphold their responsibilities.
We had considered putting the property in trust with each of us as a 25% beneficiary, however we are in Pennsylvania and have been told that transferring the property into the trust is a taxable event and will require us to pay transfer tax. The mortgagee is also uncomfortable with putting the property title in trust if the trust beneficiaries are not legally responsible for the property expenses and the mortgage.
It was brought to our attention that we could use an Agreement of Participation which assigned some sort of interest in the property to each member of the group which could be recorded as a lien. There is also the consideration of being able to revoke this interest in the property if a member doesn’t uphold the terms of the “Partnership” agreement.
I’ve done an extensive search on the web and have been unable to locate an Agreement of Participation and was wondering if you have come across one that you would be willing to share. I’d also be interested in any other suggestions you might have to establish our group in a way that addresses the concerns of all parties.
Many thanks for whatever direction you are able to offer.
Mira
Re: Agreement of Participation - Posted by Gene
Posted by Gene on December 08, 2004 at 10:06:38:
Sounds like we are in the same boat.
Could I get a copy of the answer too>
Thank you very much for prompt follow ups.