This draft agreement was generated by the Mediator.ai engine from Ben’s and Priya’s position statements. It is not a substitute for legal advice; both parties are encouraged to have this reviewed by independent counsel before closing.

Co-Ownership Agreement for

[Property Address]

Between: Ben [Last Name] (“Ben”)
And: Priya [Last Name] (“Priya”)
Date: [Date]
Closing Date: May 29, [Year]

1. Purchase Terms

Purchase Price: $720,000
Down Payment: $180,000 (25%)

Down Payment Contributions:

Ben: $126,000 (70%)
Priya: $54,000 (30%)

2. Initial Ownership Structure

Upon closing, ownership equity shall be established at:

Ben: 70%
Priya: 30%

This reflects each party’s down payment contribution and serves as the starting point for equity calculation.

3. Emergency Reserve Fund

Before mortgage payments begin accruing toward equity adjustments, Ben shall contribute $10,000 to Priya’s emergency savings account within 30 days of closing. This one-time payment:

Does not alter the initial 70/30 equity split
Recognizes that Priya is contributing 100% of her liquid savings to the down payment
Establishes baseline financial security for both parties
Is not recoverable in the event of separation or sale

4. Ongoing Mortgage Payments and Equity Adjustment

Payment Structure:
Monthly mortgage payments (principal and interest only) shall be split proportionally based on gross annual income, recalculated each January 1st. As of the agreement date, the anticipated split is approximately:

Ben: 65%
Priya: 35%

Equity Accrual:
Each party’s equity share shall increase based on their proportional contribution to principal payments. The formula:

New Equity Share = (Initial Equity × Remaining Principal) + (Party’s Cumulative Principal Payments) ÷ (Total Cumulative Principal Payments)

Annual Reconciliation:
By February 15th each year, both parties shall review:

Total principal paid in the prior calendar year
Each party’s contribution percentage
Updated equity shares
Current income split for the coming year

5. Parenting and Caregiving Protection

If either party reduces work hours or takes leave to provide primary care for a child (biological, adopted, or foster), that party shall continue accruing equity as if they were contributing their most recent proportional share. This protection applies for:

Maternity or paternity leave
Any period of primary caregiving that reduces the caregiver’s income by more than 20%
Up to 24 cumulative months per child

During such periods, the non-caregiving party shall cover the caregiving party’s portion of the mortgage. These payments accrue to the caregiver’s equity share at the rate they would have paid had their income remained unchanged.

6. Property Taxes, Insurance, and Maintenance

Shared Costs:
Property taxes, homeowners insurance, HOA fees (if any), and maintenance costs under $1,000 shall be split using the same income-based proportion as mortgage payments.

Major Repairs:
Repairs or improvements exceeding $1,000 require mutual agreement. If agreed upon, costs are split proportionally and do not directly adjust equity shares (though they may affect valuation at sale or buyout).

7. Buyout Rights in the Event of Separation

If the relationship ends and both parties cannot agree on continued co-ownership, the following process applies:

Step 1: Right of First Refusal (30 days)
Either party may declare intent to buy out the other. The buying party has 30 days from the date of declaration to commit.

Step 2: Valuation (60 days from commitment)

Both parties shall each select one licensed residential appraiser
The two appraisers shall jointly conduct a valuation
If their valuations differ by less than 5%, the average is used
If they differ by 5% or more, the two appraisers shall jointly select a third appraiser whose valuation shall be binding
All appraisal costs are split 50/50

Step 3: Buyout Payment (90 days from valuation)
The buying party shall pay the departing party their equity percentage of the appraised value within 90 days. Payment methods:

Cash or cashier’s check
Refinanced mortgage in the buying party’s name alone (removing the departing party from all loan obligations)
Any combination agreed upon by both parties

Step 4: If No Buyout Occurs
The property shall be listed for sale with a mutually agreed-upon realtor if any of the following occurs:

Neither party declares buyout intent within 30 days of separation, or
A declaring party fails to commit to the buyout within the 30-day right-of-first-refusal window, or
A committing buyer fails to complete the buyout payment within the 90-day window allowed under Step 3 (measured from the conclusion of valuation under Step 2).

Sale proceeds, after all closing costs and mortgage payoff, shall be distributed according to each party’s equity percentage at the time of sale.

Occupancy During Buyout:
The party remaining in the property during the buyout period shall pay 100% of mortgage, taxes, and insurance. These payments accrue to their equity.

8. Death of Either Party

If either party dies while both are co-owners:

Ben’s Death:
Priya shall have the right, but not the obligation, to purchase Ben’s equity share from his estate at fair market value (determined by single appraisal, paid by estate) within 180 days. If Priya declines or cannot complete purchase, Ben’s equity share passes according to his will or intestate succession, and the new owner becomes Priya’s co-owner under these same terms.

Priya’s Death:
Ben shall have the right, but not the obligation, to purchase Priya’s equity share from her estate at fair market value (determined by single appraisal, paid by estate) within 180 days. If Ben declines or cannot complete purchase, Priya’s equity share passes according to her will or intestate succession, and the new owner becomes Ben’s co-owner under these same terms.

9. Dispute Resolution

If the parties cannot agree on any matter related to this agreement (including valuation disputes not covered by Section 7), they agree to:

First attempt good-faith negotiation between themselves
If unresolved within 14 days, engage a neutral mediator mutually agreed upon (costs split 50/50)
Mediation shall occur within 30 days of mediator selection

10. Modifications

This agreement may be modified only by written amendment signed by both parties. Both parties agree to review this agreement annually and after any major life change (marriage, birth of child, significant income change, etc.).

11. Severability

If any provision of this agreement is found unenforceable, the remaining provisions shall remain in full effect.

12. Good Faith

Both parties acknowledge:

This agreement reflects their current understanding and intentions
Both have had opportunity to seek independent legal counsel
Both enter this agreement voluntarily and with full disclosure
The goal is a fair partnership that protects both parties

Disclaimer: This agreement represents the parties’ current intentions and understanding. It is not a substitute for legal advice. Both parties are encouraged to have this document reviewed by independent attorneys licensed in their jurisdiction before closing.

Ben: _________________________________ Date: _________

Priya: _________________________________ Date: _________