What Is a Property Agreement?
A property agreement is a legal document that states the ownership of a property or equipment during a couple’s relationship. This document emphasizes the owner's properties and how it will be divided if the couple separates or files for divorce.
How to Write a Property Agreement
There are cases wherein married or unmarried couples share property ownership, but with a catch. Terms are laid out in a simple agreement, which ensures that if they separate, the properties are distributed accordingly. If you’re planning to write one, guidelines are listed below to help you out.
1. Prepare the Terms and Conditions
Before getting into the properties itself, let your clients discuss the terms and conditions. Ideally, this should take place before other matters are negotiated. Also, facilitate the discussion to ensure there is no bias in the terms and conditions.
2. Identify the Assets Involved
According to the common law, you can’t divide individual properties that you own but rather equally divide the assets that you share. But in community properties, things are different because these assets are bought in the span of the relationship.
3. Compute the Obtained Debts
Before writing the agreement, the debts of both parties should be settled. In common law, debts are considered conjugal if both parties benefited from it. Any debt that was made before the relationship, the debtor must take sole responsibility for the payment.
4. Allow the Clients to Discuss Other Matters
Let your clients talk again to check for discrepancies between their claims. Inconsistencies are common, but talking can sort things out. Allow them to talk until they resolve all discrepancies. If one of them decides to sell any shared property, make a sales agreement for it.
5. Have Your Clients Go Over the Document
Lastly, present the legal agreement to your clients for reviewing. This serves to verify if all written content corresponds to the details presented. Afterward, sign the document and let your clients affix their signatures as well.
What is the importance of written agreements?
Written agreements are important since they keep both parties on the same page while preventing misunderstandings and issues between them.
What are the different types of properties?
In legal terms, properties can be distinguished into different types, namely:
- Personal property - This refers to any property that is man-made and can be moved around.
- Private property - This type of property is legally owned by an individual or corporate entity.
- Public property - This is any property that is owned by the state and is freely accessible to the public.
- Real property - This refers to land as well as developments made to this property.
What are the types of agreements?
- Cooperative agreement - A type of agreement used when something valuable is transferred from federal agencies to local governments for public distribution.
- Non-disclosure agreement - Also called a confidentiality agreement, this outlines details that only the two parties can share with each other.
- Property or equipment agreement - This type of agreement binds two people to agree on what properties they own during their relationship.
What are the elements of an agreement?
- An offer.
- A statement of acceptance.
- The terms and conditions agreed.
- Considerations made.
How different is a contract from an agreement?
A contract is more specific than an agreement. The former is legally binding and its terms are enforced by law. The latter, on the other hand, is any document that states an understanding between two parties.