Home Equity Agreement Template for Nigeria

The Home Equity Agreement serves as a crucial instrument in the Nigerian real estate market, enabling property owners to access their home equity without taking on traditional debt. This document is typically used when homeowners seek to liquidate a portion of their property's value while retaining occupancy rights. The agreement, structured under Nigerian law, particularly the Land Use Act and relevant financial regulations, outlines the entire relationship between the property owner and investor, including initial valuation, equity sharing percentages, maintenance responsibilities, and exit procedures. It's particularly relevant in urban areas where property values are significant and owners seek alternative financing options. The document must comply with both federal and state-level property regulations in Nigeria, making it essential for proper legal review and registration with relevant authorities.

1. Parties: Identification of the property owner and the investment company/investor

2. Background: Recitals explaining the purpose of the agreement and the property owner's intention to share equity

3. Definitions: Definitions of key terms used throughout the agreement, including valuation methods, equity share, and property-related terms

4. Agreement Structure: Details of the equity sharing arrangement, including percentage split and investment amount

5. Property Valuation: Methodology for initial and final property valuation, including appointment of valuers

6. Investment Terms: Terms of the investment, including duration, payment details, and any restrictions

7. Property Owner Covenants: Obligations of the property owner including maintenance, insurance, and payment of taxes

8. Investor Covenants: Obligations of the investor including funding commitments and regulatory compliance

9. Property Usage and Maintenance: Rules regarding property use, modifications, and maintenance requirements

10. Sale and Exit Provisions: Procedures for property sale, buyout options, and termination of the agreement

11. Default and Remedies: Events of default and corresponding remedies available to each party

12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

13. General Provisions: Standard contract clauses including notices, amendments, and severability