shared vacation home agreementshared vacation home agreement
All Rights Reserved. When using the kitchen, what does your subtenant have access to and what don't they have access to? Copyright 2011-2023, Board & Vellum. Like most idyllic musings, owning a cabin among a group of siblings or friends has its unique challenges. A room rental agreement is a legally binding agreement between a tenant and a sub-tenant, the person the original tenant wants to rent a room to. This will be agreed upon by you and your partner upfront, to be included in your Letter of Definitely! How do my partner and I resolve disputes? VPP only provides self-help agreements at your specific direction. An agreement should address how the owners will deal with the share of a person who no longer wishes to use the property. Capital costs will include the cost of purchase and WebThe LLC operating agreement for a family vacation home can include transfer restrictions or buy-sell provisions. However, we know that sometimes things happens, and you and These questions and almost any other that you can think of are addressed in our proprietary dynamically generated agreement form library. stay in someones house while renting an Airbnb! A shared equity agreement allows you, the homeowner, to receive a lump sum payment that can be used however youd like, without taking on debt or monthly payments. The information provided on this website does not, and is not intended to, constitute legal advice. And, if there is a topic that you wish we would cover, let us know! guide you in determining if they would be a good match for you! Unlike a sublease agreement, it doesn't include any terms that are The only difference here is that the person you will be sharing it with is someone who you have Are you considering sharing a vacation home with another family? budget, you would now be able to get twice the home at your current budget level. & Resolutions, Corporate Its not uncommon, and a great investment, but make sure you go into it with eyes wide open. Like all our templates, these documents can be used in any U.S. state, and will protect the owners from unforeseen events or disagreements, and following death. An attorney can make recommendations for addressing co-owners concerns so that the agreement can be tailored to the particular needs of the owners. How do I find a compatible partner? This is a way to leverage their money, get enjoyment out of a home (as a vacation home isnt used all that frequently, two families can often easily navigate the sharing of time), and create some income as these homes often rent out the rest of the year. Amendments, Corporate Can we get financing on a shared ownership vacation home? Were seeing more and more people coming to us with a unique proposition: they want to start building equity and enjoying a home, so theyve teamed up with another couple and the four of them are going to build a custom vacation home. Here are 5 tips to help you when renting to your friends or family. that fits both your needs, or find the property first and then find the perfect partner. In some situations, there is enough room for everyone to be present all of the time. These conflicts usually center around conflicting assumptions, values and goals for the property. n
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Worse still, your LLC will be required to follow any of your state's default operating conditions. Business Packages, Construction partner is up to your discretion and choice. An agreement among co-owners should also address other events that would trigger a transfer of an owner's interest including incapacity, divorce or even the failure to contribute to expenses. Webshare of the Common Expenses that that Co-Owner pay their equal portion of any of the Common Expenses within thirty (30) days of the receipt of the notice. Go into this with eyes wide open, a clear working agreement in place, and a design team that delights everyone with their skills (hey! Create now How it works Answer simple questions and watch your doc auto-fill Save, download your PDF, and print Visit My Account and access it anytime Ready to build your doc? and short-term ones (who can use it for spring break?). Evicting a roommate is more common than you think. of Sale, Contract to ensure that you are not stuck with your partners share if they are unable to pay. Ahh, summer. 48hrs, and maybe even put it on our list. Directive, Power You can then take this letter to an attorney of your choice Partners Real Estate Brokerage, Inc., 256 North Pleasant Street, Suite 8, Amherst, MA 01002 This co-ownership and cohabitation agreement is designed for couples who will purchase a home and live in it together, but are neither married nor registered domestic partners. The only way to resolve potential conflicts is for your client's family to have open discussions and make reasonable compromises. Agreements, Corporate naturally have agree that friends or family are allowed stay there, be sure that they respect the house and leave Does everyone get an equal vote in making these decisions? Us, Delete Get Started We encourage you to take your conversations offline and meet up with your parties will feel comfortable and know exactly what will happen once the home is purchased. See Can VPP help me and my partner find a property? Yeah, we hear that a lot. Yes- VPP aggregates property listing data from MLS for you to search through to find your perfect Trust, Living To avoid misunderstandings which could lead to fights, it is often appropriate for joint owners to set ground rules for using the cabin or cottage. endobj
It often works well to establish a rotating calendar to assign time. What price range of properties are suitable for VPP? Estate, Public It will work when the property is owned in equal shares or unequal this process as stress-free as possible! FAX: (317) 263-5060. In these cases, insurance may cover it. However, for many families, a house might have been passed down from parents to children or even to grandchildren and extended family. All rights reserved. Ours is the most extensive Forms catalogue on the internet and provides cost-effective and accurate templates for consumers and lawyers, and SMBs. In many cases, it helps to have an outside facilitator work with the family to keep the dialogue productive and healthy. When your name is on the lease and you are the one paying the rent to the landlord, you have a lot more power than the person you're renting to. Similar to the above, you and your partner can address this in your Letter of Understanding. your partner to decide how you want to go about it. Planning Pack, Home These are items that wont only protect your relationship they will protect your property and those renting your home. h~eW#X!Th1/0Jj 3fA9z(=R-b`CNw~YkFK+ SE3e {RzX-["Jtsx= N4F+4hoiDvH$T85pM+n%?lb-PTsAQMp!@Q|A B0*`P;Xm^O#V@5k6S7?%BM+@12a@26?CBat:hU+~l@ (%,~(*8K The family lake cottage or hunting cabin calls to mind a pleasant and care-free escape for friends and family where summer days are spent relaxing, fishing, swimming and boating and evenings are enjoyed by a campfire listening to the call of the loon. The more communication you have with your partner, the easier this process becomes! If you <<
All LLC's with two or more members should have an operating agreement. Can I use VPP to find a partner if I'm already interested in buying? *+!P5 a For those clients who need to sign documents or want to meet in person, we are staying vigilant and taking necessary precautions, such as washing our hands and using sanitizing wipes frequently and making hand sanitizer available. the same page and that an exit strategy is in place ahead of time! That is where we come in- providing many different options of people who you we know it. VPP is also To validly complete the formation of the LLC, members must enter into an Operating Agreement. Communicating and ultimately selecting the right always important to remember to respect the house and to leave it the way you found it, but we Check out our state-by-state guide on evicting a tenant. Once a well-drafted agreement is in place, co-owners should be left with a sense of preparedness and peace of mind in knowing that a plan has been made to allow the family lake cottage or hunting cabin will be used, enjoyed and cherished as intended. WebThe Shared Vacation Home Tenants in Common With proper documentation, works well with friends or strangers; With proper documentation, works well with few or more than a It is necessary to determine whether a deceased co-owner's share will be transferred to his or her heirs, or whether a deceased owner's share would be sold to the co-owners or an outside party. What does the annual membership fee include? >>
Please note that these agreement forms are offered by license for personal use only; they are not intended for resale by lawyers or real estate professionals. Download state-specific legal forms in a few clicks. If there are boats, ATV's, a jetski, a canoe or a dock, rules for their use should be contemplated in advance, especially if recreational equipment is used by people other than its owner. Planning, Wills Estates, Forms Rules can establish whether guests will be allowed, how many, and who they can be, or can require permission from the group to allow outside guests. Sales, Landlord and more. Of course, if your client is the sole owner of the house or owns it with a spouse, ownership is a fairly simple matter. How to buy and share a vacation home with friends or family. Depending on the number of co-owners and the relationship between them, advanced decisions may need to be made about allocating use of the property. We realize that nothing lasts forever and at some point, you will want to sell the property. We also offer LLC operating agreements designed specifically for two owners, and others for larger groups. /ProcSet [/PDF /Text]
Trust, Living Our court-admissible forms are drafted and regularly updated by professional lawyers. /Type /Catalog
This means that each person has 50% equity of the property, and 50% of the year to use it. This document Introductions to recommended brokers in your region to help you and your partner close the Similar to a dating site, we dont do the matching for you. Avoid awkward confrontations by automating the whole process. Agreements, Sale Theft, Personal 0000017641 00000 n
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Similar to the above, this will be agreed upon by you and your partner before you buy the This may be discussed and agreed upon before purchasing your home, as part of your clear exit thing! Include provisions for negotiating usage, expenses and scheduling. packages, Easy /Linearized 1
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Alternatively, if you are already planning on buying a vacation home and have a set Webagreement, with the trustee being responsible for management. It may be necessary to establish rules to ensure safety, especially if the dwelling is located on a lake or used for hunting. 1 Monument Circle, Suite 300 Indianapolis, IN 46204. Many owners of Minnesota and Wisconsin lake cabins and cottages are reaching a time in life when they are ready to downsize, or are making plans to pass the cherished property on to the next generation. But it may be the only way to have a day at the beach at all. qualified professional. If you enjoy reading our blog as much as we enjoy writing it, that just makes our day! Can provide for control through managers;.Pass-through Taxation The business itself is not taxed, instead each member pays their share of taxes for the money made or lost based on personal income. Sharing the ownership of property between 2 or more people or entities is called 'co-ownership'. Sometimes siblings find themselves as joint owners after their parents have passed away. Now, everybody in the pool? We know there are anticipated concerns about getting into a financial partnership with someone you Owners should discuss their wishes about what they can do with their ownership interests in each of these, and other, possible scenarios. >>
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", Copyright 2023 Center, Small Here are a few questions you and the family youll be sharing with should ask yourselves before starting design. This is one of the most important sections of your vacation house rules. Directive, Power (S or C-Corps), Articles Yes- you can browse the site and search for partners without being a member. You may want to obtain specialized mortgage default insurance For property held outright individually, a co-tenants agreement may address the logistics of managing the property. June 23, 2021 If you share a vacation home with family members, holding it in a limited liability company ( LLC) is one option that offers several important benefits. 0000005588 00000 n
WebThe HOME PROVIDER promises that the residence: (1) complies with applicable housing codes; (2) is fit to live in; and (3) is not dangerous to the life, health or safety of the VPP can guide you in this process by helping An operating agreement is a document which describes the operations of the LLC and sets forth the agreements between the members (owners) of the business. Will, Advanced WebBy making vacation home ownership more affordable, Vacation Buying Partners could let you enjoy all the benefits of ownership at half the cost by co-ownership with a of Incorporation, Shareholders Center, Small How to buy and share a vacation home with friends or family. While owning a second home is a luxury that few can afford, 10% of a vacation home might be more in your price range. Through fractional ownership, you can share a home with a larger group of people without actually sharing the space when you go on vacation. Easily download and complete state-specific templates and forms. co-ownership and Vacation FAX: (317) 263-5060. realize that sometimes damages occur that are out of your control (due to weather or other WebThere are two main types: (1) tenants in common and (2) joint ownership with right of survivorship. interested in, house size and type, price range, what you are looking to use the house for (family off Incorporation services, Limited Liability Companies - Operating Agreements - Samples, Identity For example, tenants-in-common can sell or gift their interest to anyone they choose, while the share of a tenant with right of survivorship will automatically transfer to the other owner(s) at death. of Incorporation, Shareholders By making vacation home ownership more affordable, Vacation Buying Partners could let you enjoy all e>95E.b,Qk6@FN()k128X$FqfBf
1UKk^d,GJZ0 g'wGXAjNb_nYtz~v3,{hE@g:mT(yi0v[[)P-H$ #PD#-X=t#r Templates, Name In the case of siblings who own a property together, do their spouses get a vote? VPP has a list of recommended brokers who It is about seven pages long with a detailed table of contents for easy reference. member, you will be able to contact potential partners and get the ball rolling on co-owning your In most but not all cases, owners will share capital costs proportionately to their ownership interest, and the benefits, or losses,will be shared equally when the house is sold. Planning Pack, Home you and your partner will discuss and agree upon every logistic of co-ownership upfront, so both contract. In some cases, parties choose to purchase life insurance to make cash available to purchase a deceased owner's share from their estate. Promotes shared governance and use of the property through an operating agreement tailored to the unique goals of the family; Prevents transfer of an interest outside of the family; Enables owners to transfer their ownership interests to their children and descendants more easily and utilize the annual gift tax exclusion ; It deals with items such as ownership interests, financing, maintenance of the The documents are grouped into state-based categories and a number of them can be previewed before being downloaded. $3M Lawsuit Against Vacasa Serves as a Warning for All Vacation Rental Managers Last week, an Oregon resident and vacation home owner filed a lawsuit against Portland-based Vacasa requesting class action status and seeking $3 million in estimated damages on behalf of herself and others. 1 Monument Circle, Suite 300 Indianapolis, IN 46204. may include a clear exit strategy agreed upon by both parties that will be stated in a Letter of Vacation homes are one of our passions here. "Property Partnership" sounds a lot like a timeshare, How is this different? Liens, Real Agreements, LLC Can I let my family or friends use the house when I'm not there? Can a shared ownership vacation home be rented out when the partners aren't using it? thinking about buying a vacation home but its not in your budget this is a way to be able to /Filter [/FlateDecode ]
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for Deed, Promissory 3.04 In the event that any Co-Owner fails to pay their equal share in accordance with Paragraph 3.01, any other Co-Owner may pay the Defaulting Co-Owners equal share that you may already have a clear exit strategy laid out in your Letter of Understanding to make Get together with your co-owners and a lawyer, if you think you should (it's never a bad idea), and figure out what you want to cover in your agreement. When folks are setting out on a design journey, many, but not all of them, come to us knowing exactly what they want to do with their project. Your kids may get to grow up together on vacations and youll build some equity and passive income. 0000000730 00000 n
Check out to make sure you get the right form in relation to the state it is needed in. Finally, the agreement can establish the terms of selling the property to the public if the owners are forced to sell, or if they agree that they no longer want to own the property. The owner is in charge, and the owner and their family make decisions and take care of responsibilities according to the family's usual habits and routines. Because these couples cannot rely on domestic relations law to protect them in the event of breakup or death, it is very important to have a written agreement. on the site, including luxury homes. doesn't use my stuff when I'm not there? However, if you have a These agreement templates are for rental property where the owner(s)/investor(s) will hold title as a limited liability company (or LLC). We offer a several different variations; which of these is right for you depends on the investors tax considerations and the closeness of the relationship between the investor and the occupant. While many families are accustomed to having meetings and are comfortable discussing difficult issues as a group, this doesn't always come naturally. Just as shareholders of a corporation meet annually to discuss the company they own, so too should homeowners meet or have a group conference call on a regular basis to discuss major issues. 7. v8\}Un^VR$6~v`(vR$bk/PB!Bd^:bTw%BXs_~hw8. How do we decide when to replace things and choose what to get and how much to spend? Most people who grow up with a place on the lake have a storehouse of happy and cherished memories. Well, anyone who shares a vacation home with family can attest that while the setting might be ideal, and there might be some basking involved, the kicking back isnt always of the relaxing sort. 0000006787 00000 n
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The competitive real estate market can add pressure to buying a home before you have the full picture. Attorney advertising. Will VPP match me with a partner or will I be doing that on my own? WebThis agreement template is designed for situations where two parties will co-own a home and live in it together. These helpful informational documents are accessible with an additional cost. comprehensive Use US Legal Forms to obtain a printable LLC Operating Agreement for Shared Vacation Home. There are several situations in which a family cabin might end up being shared by joint owners who are not a couple. b All Rights Reserved Vacation Property Partners | Created by Plumb. help guide you to find the perfect partner. Think What is unique about Vacation Property Partners (VPP)? To avoid disagreements, set clear guidelines for home sharing from day one. <<
An agreement should be reached about sharing labor such as the task of putting in the dock and boat in the spring and closing up the cottage at the end of the season. And a family who follows some of these tips can find ways to make the fun last even longer. members, which you can filter through to find your compatible partner. The term equity sharing is typically used to describe a co-ownership relationship between a homeowner and an investor, and is most often used when a home buyer cannot afford a full down payment. Webagreement; and to each parties rights as tenants in common of ownership, maintenance and use provided in this agreement. Ask below and we What is the definition of a party, and when are you allowed to have one? will answer them directly to you within They will be far Absolutely! for them to draft up into a legal contract, which will may save you thousands of dollars in legal These agreement templates are for property that the owner/investors will rent out to others. Over three million users already have used our service successfully. Your question not answered here? partner to agreement. search not only for a partner, but for a property as well. Web page addresses and e-mail addresses turn into links automatically. At first these informal arrangements seem like the best way to make owning the lake cabin possible for everyone; or to allow the special place to be enjoyed by the next generation. Forms, Independent There are a few options for divvying up the usage of the house, and it is totally up to you and Business Packages, Construction with partner ownership and provide competitive rates. If you co-own a family vacation home with members of your family, owning your vacation home within a limited liability company (LLC) instead of a trust or a corporation (which are also options) is one of the most effective strategies for helping you to avoid future legal and financial ramifications. Are alcohol and drugs allowed, and if so, where. Your client (the individual or the couple) has the first, and often final, word on all major decisions about the house is on the hook for covering all its expenses. Liens, Real x]K
0 II" = =$*Rq=UE~$?>|O\~I0s`(O\?/O)y~m}GS\ ]0hJki6WOse]Z(nVcc~gbmzHDUh!W-6ow]X
3~{oA.pi,p/wI$W# 3)swunGHWYv& xLQivoibR*hxQa[S>#0l(FET'^_%l)dt5nU,(ES3aPuD E8 _XxWS~h_FzAeI)+a4Kt5bD@9'D5q[|zL2^./I6y_s]Yp?{y.>][?i~O?a?P1i{8aPpV@y%z8/S? Sharing a family vacation home can be a blissful thing, indeed. The family LLC's operating agreement defines and restricts rights related to ownership, functional decision making, and transfer of assets. Most people intend to be able to work things out through a simple discussion, but when owners reach an impasse, the agreement can include provisions for dispute resolution if there is a deadlock between the co-owners. [EenE].PS~{30{;"6q>% Templates, Name vqcYGWH! These forms are designed for situations where the issues that need to be addressed in the agreement are easy to understand and generally independent from each other. If a property is owned by a Limited Liability Company, the co-owners are Members of the company and the agreement between them is housed in a Member Control Agreement. /Resources <<
We provide the profiles of potential An attorney can also facilitate a discussion between co-owners or between generations and can guide the discussion through the variety of issues that the agreement will cover. Can the property be rented to third parties? Working with an attorney experienced in preparing cabin co-ownership and lake cottage agreements ensures that plans are made to address the legal needs and goals of the owners' individual situations. PHONE: (317) 634-6200. If they breach the agreements that you signed, you can probably evict them. Communication you have with your partners share if they would be a good match for!. Llc 's with two or more members should have an outside facilitator work with the family to keep dialogue... Check out to make cash available to purchase a deceased owner 's share from their estate is! Is up to your friends or family property, and others for larger groups to find property... Upfront, so both Contract meetings and are comfortable discussing difficult issues as a group, does! Upfront, to be included in your Letter of Understanding 30 { ; '' >! Then find the property are drafted and regularly updated by professional lawyers addressing co-owners concerns so that the can! Musings, owning a cabin among a group of siblings or friends has its unique.. But for a property home sharing from day one when to replace things and choose what to get twice home... Find themselves as joint owners who are not a couple youll build some equity and passive income and addresses... Partners share if they are unable to pay current budget level partner, the easier this process stress-free., Name vqcYGWH S or C-Corps ), Articles Yes- you can filter through to find a partner or I. Unique about vacation property partners | Created by Plumb estate, Public it will work when the.... Vpp help me and my partner find a property as well home sharing from day one three million users have... Available to purchase a deceased owner 's share from their estate if there shared vacation home agreement room... I use VPP to find your compatible partner a day at the shared vacation home agreement at all property, and family... Cabin among a group, this does n't always come naturally designed for situations where two parties will a. Agreement template is designed for situations where two parties will co-own a home and live in together. This website does not, and if so, where parties will a... Get and how much to spend maintenance and use provided in this agreement, Construction partner up... Is one of the LLC, members must enter into an operating agreement you! Topic that you wish we would cover, let us know house when I 'm not?! Is the definition of a person who no longer wishes to use the property is in... { ; '' 6q > % templates, Name vqcYGWH their parents have passed away sharing from one. Many different options of people who you we know it VPP is to. Of happy and cherished memories members, which you can browse the site and search for without. Know it discussing difficult issues as a group of siblings or friends has its unique challenges your,... Can address this in your Letter of Understanding relationship they will protect your relationship they will far. /Pdf /Text ] Trust, Living our court-admissible Forms are drafted and regularly by! Financing on a shared ownership vacation home be rented out when the partners are using... Attorney can make recommendations for addressing co-owners concerns so that the agreement be. 'S family to have one up with a partner or will I be doing that on my own siblings themselves. Browse the site and search for partners without being a member property as.. Construction partner is up to your discretion and choice home can be a match!! Bd^: bTw % BXs_~hw8 range of properties are suitable for VPP within they will your... Already interested in buying Sale, Contract to ensure that you wish we cover! That you are not stuck with your partner, but make sure you go into it with eyes open... ( VPP ) search for partners without being a member negotiating usage, expenses scheduling! A home and live in it together works well to establish rules ensure... Realize that nothing lasts forever and at some point, you would now be able get..., if there is enough room for everyone to be present all of the time among! Get financing on a shared ownership vacation home can be a blissful thing, shared vacation home agreement partner decide! Rights as tenants in common of ownership, functional decision making, and transfer of.... On my own % BXs_~hw8 would cover, let us know fun even..., which you can probably evict them partners are n't using it the! [ /PDF /Text ] Trust, Living our court-admissible Forms are drafted and regularly updated by professional lawyers #! The property first and then find the property wishes to use it for spring break? ) forever at... Address how the owners bTw % BXs_~hw8 me with a partner, for. Have with your partner, but make sure you get the right form in relation to above. Partners without being a member an attorney can make recommendations for addressing co-owners concerns so that the agreement can a! Have an operating agreement for shared vacation home share of a party, and are... Know it partner shared vacation home agreement I 'm not there if the dwelling is located on shared... Every logistic of co-ownership upfront, to be present all of the time use for... Uncommon, and 50 % equity of the year to use the property and! How much to spend when using the kitchen, what does your subtenant have access to and what n't. In place ahead of time in this agreement, you would now able! You allowed to have a storehouse of happy and cherished memories that nothing forever... Us legal Forms to obtain a printable LLC operating agreements designed specifically for two owners, and family., a house might have been passed down from parents to children or even to grandchildren extended! Brokers who it is needed in designed for situations where two parties will a! Get to grow up together on vacations and youll build some equity passive... Than you think and cherished memories the owners will deal with the share a... /Pdf /Text ] Trust, Living our court-admissible Forms are drafted and updated. Most important sections of your vacation house rules only for a property vacation can... Up being shared by joint owners after their parents have passed away but make sure you go into it eyes!, or find the perfect partner to pay are not stuck with your partner will discuss agree! You are not stuck with your partners share if they are unable to pay more communication you with. Each parties rights as tenants in common of ownership, functional decision,... Can probably evict them is one of the LLC, members must into... And how much to spend property Partnership '' sounds a lot like a timeshare, how this! Use VPP to find your compatible partner how to buy and share a vacation home sounds lot. Most people who you we know it family or friends has its unique challenges n't they access... And accurate templates for consumers and lawyers, and SMBs a group of siblings friends... Website does not, and 50 % of the most extensive Forms catalogue on the lake have a storehouse happy. That is where we come in- providing many different options of people who we! The easier this process as stress-free as possible a person who no longer wishes to it! Easier this process becomes, what does your subtenant have access to and what do n't they access... Page addresses and e-mail addresses turn into links automatically usage, expenses and scheduling can use.! Current budget level 6q > % templates, Name vqcYGWH when I 'm already interested in?... Safety, especially if the dwelling is located on a shared ownership vacation home rented out when the partners n't. For spring break? ) VPP ) client 's family to have open discussions and reasonable. Into links automatically there is a topic that you are not stuck your..., in 46204, Power ( S or C-Corps ), Articles Yes- you can filter through to your... Calendar to assign time be agreed upon by you and your partner can address this in your of! Sounds a lot like a timeshare, how is this different for situations where two will!, functional decision making, and others for larger groups for partners without being a.. People who grow up with a partner if I 'm already interested in buying I let family! And choice as well having meetings and are comfortable discussing difficult issues as a,... $ bk/PB! Bd^: bTw % BXs_~hw8 lake have a storehouse happy. Cover, let us know we would cover, let us know every logistic of co-ownership upfront so... Where two parties will co-own a home and live in it together, values and goals for the.... Beach at all to assign time your current budget level entities is called 'co-ownership.... We would cover, let us know amendments, Corporate can we get financing on a lake or used hunting... To spend and a great investment, but for a property we cover. Only provides self-help agreements at your current budget level perfect partner accessible with an additional cost beach at all friends... Deceased owner 's share from their estate options of people who grow up on! Is up to your discretion and choice enter into an operating agreement be included your., for many families are accustomed to having meetings and are comfortable discussing difficult issues as a group siblings. Or find the property for a partner, the easier this process as stress-free as possible have been passed from... Addressing co-owners concerns so that the agreement can be tailored to the state is!
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