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Equity Sharing Agreement (Real Estate) for New Zealand

Equity Sharing Agreement (Real Estate) Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes and regulates the shared ownership of real estate property between two or more parties. The document details the ownership structure, financial contributions, management responsibilities, income distribution, and exit mechanisms. It ensures compliance with New Zealand property law requirements, including the Property Law Act 2007 and Land Transfer Act 2017, while providing a framework for joint property investment and clear guidelines for dispute resolution. The agreement addresses both residential and commercial property sharing arrangements, incorporating provisions for property management, maintenance responsibilities, and financial obligations.

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What is a Equity Sharing Agreement (Real Estate)?

The Equity Sharing Agreement (Real Estate) is a vital legal instrument in New Zealand's property market, designed to facilitate and regulate co-ownership arrangements in real estate investments. This document is particularly relevant in scenarios where multiple parties wish to combine their resources to invest in property, whether for residential or commercial purposes. It addresses the complexities of shared property ownership under New Zealand law, including compliance with the Property Law Act 2007, Land Transfer Act 2017, and other relevant legislation. The agreement is commonly used by individual investors, family members, business partners, or investment companies looking to pool their resources for property acquisition. It provides comprehensive coverage of ownership rights, financial responsibilities, property management, income distribution, and exit strategies, while ensuring all parties' interests are protected under New Zealand's legal framework.

What sections should be included in a Equity Sharing Agreement (Real Estate)?

1. Parties: Identifies and provides full details of all parties entering into the equity sharing arrangement

2. Background: Sets out the context of the agreement, including the property details and the parties' intention to enter into an equity sharing arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Property Details: Specific details of the subject property, including legal description and title references

5. Ownership Structure: Defines the ownership percentages and type of ownership (e.g., tenants in common)

6. Financial Contributions: Details initial and ongoing financial contributions from each party

7. Management and Decision Making: Procedures for property-related decisions and management responsibilities

8. Costs and Expenses: Allocation of property-related expenses, maintenance costs, and other outgoings

9. Distribution of Income: How rental income or other property-derived income will be shared

10. Sale and Exit Provisions: Process for selling the property or one party exiting the arrangement

11. Dispute Resolution: Procedures for resolving disagreements between the parties

12. General Provisions: Standard contract clauses including notices, amendments, and governing law

What sections are optional to include in a Equity Sharing Agreement (Real Estate)?

1. Mortgage and Financing: Required if the property purchase involves external financing or mortgages

2. Rental Management: Needed if the property will be rented out to tenants

3. Property Development: Include if parties plan to develop or significantly renovate the property

4. Death or Incapacity: Special provisions for handling ownership in case of death or incapacity of a party

5. First Right of Refusal: Option for existing parties to purchase others' shares before external sale

6. Valuation Mechanism: Specific procedures for property valuation in case of dispute or exit

7. Insurance Requirements: Detailed insurance obligations if specific coverage is required

8. Tax Treatment: Special provisions for handling tax implications if complex arrangements exist

What schedules should be included in a Equity Sharing Agreement (Real Estate)?

1. Schedule 1: Property Details: Detailed property information including title details, certificates, and property condition report

2. Schedule 2: Financial Contributions: Detailed breakdown of each party's initial and committed future contributions

3. Schedule 3: Ownership Percentages: Detailed calculation and breakdown of ownership shares

4. Schedule 4: Expense Allocation: Detailed breakdown of how various expenses are to be shared

5. Schedule 5: Management Procedures: Detailed procedures for property management and decision-making

6. Appendix A: Property Valuation: Initial property valuation report

7. Appendix B: Property Plans: Property plans, drawings, and relevant certificates

8. Appendix C: Mortgage Details: If applicable, details of any mortgage or financing arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



















































Clauses








































Relevant Industries

Real Estate

Property Development

Financial Services

Property Investment

Property Management

Legal Services

Banking

Construction

Urban Development

Relevant Teams

Legal

Real Estate

Investment

Property Management

Finance

Compliance

Risk Management

Portfolio Management

Business Development

Operations

Relevant Roles

Property Lawyer

Real Estate Agent

Property Investment Manager

Financial Advisor

Property Developer

Legal Counsel

Investment Analyst

Property Portfolio Manager

Trust Manager

Conveyancing Lawyer

Real Estate Investment Director

Property Fund Manager

Compliance Officer

Risk Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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