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The Home Equity Agreement serves as a alternative financing instrument under German law, allowing property owners to access their home equity without incurring traditional debt obligations. This document is particularly relevant in situations where homeowners seek liquidity while retaining residence rights, or when traditional financing options are less suitable. The agreement must comply with German property law requirements, including notarization and registration in the Grundbuch (land register), while addressing specific aspects of German financial services regulations. It details the investment structure, valuation mechanisms, ongoing obligations of both parties, and exit provisions, incorporating necessary consumer protections under German law. The document is designed to balance the interests of both homeowners and investors while ensuring legal certainty under the German civil law system.

1. Parties: Identification of the homeowner and the investor, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including property ownership status and purpose of the equity agreement

3. Definitions: Key terms used throughout the agreement, including property-specific terms, financial terms, and German legal concepts

4. Property Details: Detailed description of the property, including land register information (Grundbuch) and current encumbrances

5. Investment Structure: Terms of the equity investment, including percentage of ownership being transferred and valuation methodology

6. Payment Terms: Details of the initial payment to the homeowner and any ongoing payment obligations

7. Property Valuation: Mechanisms for initial and subsequent property valuations, including appointment of valuers

8. Homeowner Obligations: Ongoing obligations regarding property maintenance, insurance, and permitted modifications

9. Exit Mechanisms: Terms for termination, sale of the property, or buyout of the investor's interest

10. Representations and Warranties: Standard and property-specific representations by both parties

11. Default and Remedies: Events of default and corresponding remedies under German law

12. Notices: Communication requirements and contact details

13. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction