JOINT TENANCY AGREEMENT

JOINT TENANCY AGREEMENT BETWEEN MARK KELLY AND MATHEW KELLY

This Joint Tenancy Agreement (“Agreement”) is made and entered into on the [insert date], by and between MARK KELLY, whose address for the purposes of this agreement is located at [insert address], hereinafter referred to as “Mark,” and MATHEW KELLY, whose address for the purposes of this agreement is located at [insert address], hereinafter referred to as “Matthew.”

RECITALS

WHEREAS, Mark R. Kelly is the owner of a certain parcel of real property located in Santa Cruz County, California, described as 1200 ROBERTS RD., BEN LOMOND, CA 95005

WHEREAS, Matthew F. Kelly desires to purchase an option from Mark R. Kelly for an approximately 30,000 square feet of land to build an ADU (Auxiliary Dwelling Unit) on the Property.

WHEREAS, the parties desire to enter into a Joint Tenancy Agreement to set forth their respective rights and responsibilities with respect to the shared use of the Property.

WHEREAS, Mark R. Kelly plans to build a primary residence of approximately 3,000 sq. ft on the Property and sell it within the next several years.

WHEREAS, Matthew F. Kelly plans to build an ADU on the Property and keep it for his personal use.

WHEREAS, the parties wish to ensure that the Joint Tenancy Agreement is fully transferable by either party or any future party desiring to sell or transfer their interest in the Property, without interfering with the sale or transfer.

WHEREAS, the parties agree that their respective rights and obligations with respect to the Property shall be governed by the terms and conditions set forth in this Joint Tenancy Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

  1. Property Description:
    • Mark R. Kelly is the owner of the property located at 1200 Roberts Rd., Ben Lomond, CA 95005, consisting of approximately 41 acres, which is more particularly described as 1200 ROBERTS RD., BEN LOMOND, CA 95005. The parcel Number being (APN) 07942101. See Maps Attached as Exhibit 1.
    • The property includes a driveway off of Roberts Rd. that is shared by the parties up to the T intersection.
    • To the left of the T intersection is the home site owned by Mark Kelly, while the ADU pad owned by Matthew F. Kelly is located at the top of the driveway and directly to the right, adjacent to Kurt Brumbaugh’s property.
    • The ADU pad is approximately 150 feet by 200 feet in size and is suitable for the construction of an auxiliary dwelling unit and a detached garage, subject to applicable zoning and building regulations.

 

  1. Shared Use and Responsibilities:
    • Driveway:
      • The driveway off of Roberts Rd. will be shared up to the T intersection. Mark Kelly will maintain the driveway 100% from the T intersection to the left up the hill to his lot.
      • Matthew Kelly will maintain the driveway 100% from the T intersection to the right to the ADU lot.
      • The maintenance of the gate will be shared 50/50.
    • Water Tanks:
      • The water tanks will be jointly owned by Mark and Matthew Kelly, with each party having a 50% ownership interest.
      • Each party will pay 100% for any water tanks that are specifically for their home sites.
    • Electrical:
      • The electrical service will be jointly owned, with each party having a 50% ownership interest. Each party will pay 100% for any service specifically for their home sites.
    • Septic/Sewer:
      • Any shared expenses related to septic or sewer will be split equally between Mark and Matthew Kelly.
      • Each party will pay 100% for any service specifically for their home sites.

 

  1. Exclusive Use and Responsibilities:
    • Owned by Mark Kelly:
      • All property not specifically called out as jointly owned will be owned by Mark Kelly.
      • This includes all timber rights and responsibilities.
    • Owned by Matthew Kelly:
      • The ADU pad will be owned by Matthew Kelly, along with any structures built on it.

 

  1. Transferability:
    • This Joint Tenancy Agreement may be assigned or transferred by either party to any third party, with written notice to the other party. The parties agree that such assignment or transfer shall not affect the rights and obligations of the parties under this Agreement.
    • The parties agree that this Joint Tenancy Agreement shall not interfere with the sale, transfer, or encumbrance of the respective properties by either party in the future. However, in the event of a sale, transfer, or encumbrance, the parties agree to provide written notice to each other of any such transaction, and to include in any conveyance of the respective properties a reference to this Joint Tenancy Agreement and its terms.
    • Notwithstanding anything to the contrary in this Agreement, in the event that either party sells, transfers, or otherwise disposes of their respective property, the new owner of such property shall be deemed to have assumed all of the selling party’s obligations under this Joint Tenancy Agreement. The selling party shall be released from all such obligations upon the transfer of the property.

 

  1. Occupancy:
    • The Parties agree that Mark Kelly shall have the right to reside in the main house located on the Property, and Matthew Kelly shall have the right to reside in the ADU located on the Property.
    • The Parties acknowledge and agree that Mark Kelly’s interest in the Property and Matthew Kelly’s interest in the Property are equal, and no party shall interfere with the other party’s occupancy of their respective dwelling.
    • In the event that either party vacates their dwelling, the remaining party shall have the right to use such dwelling for their own personal use and enjoyment.
    • If either party intends to vacate their dwelling, they shall provide the other party with written notice of their intention to do so at least thirty (30) days prior to vacating.

 

  1. MAINTENANCE FUND:
    • The parties shall establish and maintain a maintenance fund to cover the cost of repairs and maintenance for the common areas of the Property, including but not limited to the shared driveway, water tanks, electrical service, and septic system.
    • Each party shall contribute to the fund on a monthly basis, and the amount of each contribution shall not be less than $35.00 per month.
    • The maintenance fund shall be held in a separate account designated solely for that purpose. The parties shall jointly oversee the maintenance fund, and any withdrawals from the account shall require the mutual agreement of both parties.
    • In the event that the maintenance fund is insufficient to cover the cost of necessary repairs or maintenance, the parties shall contribute equally to cover any additional costs.
    • Upon termination of this Agreement, any remaining balance in the maintenance fund shall be disbursed equally to the parties.
    • Any disputes regarding the maintenance fund shall be resolved in accordance with the dispute resolution provisions of this Agreement.

 

  1. Death, Insolvency and Other Events
    • In the event of the death, insolvency, bankruptcy, or other event that affects the ownership or control of the Property or the Joint Tenancy Agreement, the following provisions shall apply:
      • In the event of the death of one of the joint tenants, the ownership interest of the deceased joint tenant shall pass to their heirs according to the laws of intestacy or by will, and not to the surviving joint tenant.
      • In the event of the insolvency or bankruptcy of one of the joint tenants, the Joint Tenancy Agreement shall remain in effect, and the assets of the insolvent or bankrupt joint tenant shall be subject to the claims of his or her creditors.
      • If one of the joint tenants wishes to sell, transfer, or otherwise dispose of his or her interest in the Property, he or she shall give written notice to the other joint tenant at least 60 days prior to the intended date of sale, transfer, or disposal. The other joint tenant shall have the option to purchase the interest of the selling joint tenant at fair market value.
      • If both joint tenants are deceased, the Property shall be subject to the terms of their respective wills or, in the absence of a will, the laws of intestate succession of the state in which the Property is located.
      • If any other event occurs that affects the ownership or control of the Property or the Joint Tenancy Agreement, the joint tenants shall make every reasonable effort to resolve the matter amicably and in accordance with the spirit of this Agreement.

 

  1. Failure to Pay Expenses:
    • If any party fails to pay their share of the expenses or contributions required under this agreement, the other party may give notice to the delinquent party of the amount due and demand payment within thirty (30) days of such notice.
    • If the delinquent party fails to make payment within thirty (30) days of such notice, the non-delinquent party may, at its sole discretion, pay the delinquent party’s share of the expenses or contributions, and the delinquent party shall reimburse the non-delinquent party for such payment within ten (10) days of receipt of written demand.
    • If the delinquent party fails to reimburse the non-delinquent party for such payment within ten (10) days of receipt of written demand, the non-delinquent party may seek legal remedies to collect the delinquent party’s share of the expenses or contributions, including reasonable attorney’s fees and costs incurred in connection with such collection efforts.

 

  1. Dispute Resolution:
    • Any disputes arising out of or relating to this Joint Tenancy Agreement shall be resolved first through amicable settlement between the parties.
    • If the parties are unable to reach a resolution through amicable settlement, the dispute shall be referred to arbitration in accordance with the rules of the American Arbitration Association.
    • The arbitration shall be conducted by a single arbitrator appointed in accordance with the rules of the American Arbitration Association.
    • The arbitration shall take place in California, and the arbitrator’s decision shall be final and binding on both parties.
    • Each party shall bear its own costs and expenses associated with the arbitration, including its own attorneys’ fees.
    • This clause does not prevent either party from seeking injunctive relief or other equitable remedies in a court of competent jurisdiction.

 

  1. Governing Law:
    • This Joint Tenancy Agreement shall be governed by and construed in accordance with the laws of the state of California.
    • Any legal action arising from or related to this Agreement, including but not limited to disputes, claims, or breaches, shall be brought in the courts of the state of California.
    • The parties hereby consent to the exclusive jurisdiction of such courts and waive any objection to venue or jurisdiction.
    • In the event of any conflict between the terms of this Agreement and the applicable law, the law shall prevail, and the invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision.

 

  1. Severability:
    • If any provision of this Agreement is held to be invalid or unenforceable for any reason, the parties agree to negotiate in good faith to modify the Agreement to give effect to the original intent of the parties as closely as possible in a mutually acceptable manner.
    • If the parties are unable to reach a mutually acceptable modification within thirty (30) days of the notice of the invalid or unenforceable provision, the remaining provisions shall continue in full force and effect, and the invalid or unenforceable provision shall be deemed stricken from the Agreement, but only to the extent necessary to make the Agreement enforceable.
    • In the event that a court of competent jurisdiction determines that any provision of this Agreement is unenforceable, such determination shall not affect the enforceability of any other provision of this Agreement.

 

  1. Counterparts:
    • This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

  1. Notices:
    • Any notice, request, demand or other communication required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, or by email, or by registered or certified mail, postage prepaid, return receipt requested, addressed to the parties at their respective addresses set forth below, or to such other address as either party may specify by notice to the other party.

 

  1. Assignment:
    • Neither party may assign or transfer this Agreement, in whole or in part, without the prior written consent of the other party, except that either party may assign this Agreement to any successor to all or substantially all of its business or assets.

 

  1. Memorandum of Agreement
    • Contemporaneous with execution of this Joint Tenancy Agreement, the parties shall execute, acknowledge and record in the Santa Cruz County Records a Memorandum of Agreement reflecting the terms and conditions of this Joint Tenancy Agreement.

 

IN WITNESS WHEREOF, the parties have executed this Joint Tenancy Agreement as of the date first above written:

/s/_____________________________

Mark R. Kelly

Date: __________________________

 

/s/_____________________________

Mathew F. Kelly

Date: __________________________

 

 

 

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