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Program Guidelines

The program guidelines are intended to provide participants with a clear understanding of the conditions and rights under which the participant buys the property and sells it back to Brown. Also, the guidelines detail various notifications and restrictions the participant must adhere to while the participant owns the property.

  • Properties will be offered to new and current faculty and staff (see Eligibility)
  • Premises will be used exclusively for single family residence and may not be rented or leased (except when employee is on Approved Leave of Absence)
  • Sale price to the participant shall be determined by a market appraisal commissioned by the University. The sale price shall be set at 80% of the appraised value to reflect the value of the University's buy-back options placed on the house and the right of the University to approve capital improvements to the house
  • After initial property renovation by Brown, pursuant to specifications of Brown's choosing, the property and structures are sold to the participant "as is". Prior to purchase, the participant should conduct a home inspection by a licensed inspector. Further, an inspection for existing environmental conditions (including but not limited to lead paint, radon, asbestos, UFFI) is recommended. Problems identified in these inspections that were not factored into the "as is" market appraisal can be addressed by the participant and the University prior to the sale. The University will provide to the participant all information in its possession concerning existing conditions and renovation specifications.
  • Participants shall not have the option of performing the initial propery renovation.
  • Sale of all properties is subject to approval by the appropriate Brown Corporation bodies
  • Upon sale, the participant and/or his/her agents shall hold the University harmless for any liability caused by existing environmental or structural conditions of the building or property
  • Participant can make capital improvements (see additional information under Revised Repurchase %), defined as improvements requiring a City permit, to the property but must first obtain the written approval of the University and must abide by all building codes and permits restrictions
  • To obtain approval for capital improvements (work requiring a building permit), the participant must submit to the University written, detailed plans and estimates for the proposed work. Approval will be at the University's discretion and be guided by whether the improvements add to the market value and the long-term suitability of the home in the program
  • Participant shall have an insurance policy that covers 100% replacement value of all structures
  • Participant is responsible for maintaining the property (interior and exterior) in good order, condition, and repair
  • Participant shall have a mortgage life insurance policy that will cover 100% of the outstanding mortgage balance in the event of death
  • Total debt financing secured by the property, including home equity loans and additional borrowing done at any time after the initial purchase, will normally be limited to 90% of the appraised value of the house (including the value of improvements if financing for renovations is included)
  • University has the option to buy back the house (Option A) within 60 days if participant:
    • leaves the employment of Brown University (other than by retirement)
    • wants to sell the property
    • ceases to use property as the primary residence (will allow rental/lease for up to two years if "On Leave")
    • interest in the property is transferred by court order or operation (e.g. divorce, separation, bankruptcy)
    • dies and there is no living spouse* or dies and living spouse* remarries
  • University has the option to buy back the house (Option B) with 3-year notice for academic expansion or other University purposes. For the current round of participants, the University agrees it will not invoke the 3-year notice for five years, thereby allowing eight years from the initial sale as the earliest the University can repurchase the property. Brown reserves the right to modify this timeframe in the future.
  • In the event of default on a loan secured by the property, the University will be notified and have the right to remedy the default. Upon notification of default, the University has the option to buy back the house (Option C) and deduct from this price any funds expended by the University to remedy the default.
  • The participant is required to notify the Brown to Brown Program Coordinator of status changes that impact the terms of the agreement. The participant will notify the Program Coordinator in writing of:
    • Resignation or termination of employment at Brown (other than retirement)
    • Intention to sell the property
    • Default on a mortgage secured by the property
    • Knowledge of a legal action proceeding wherein someone other than the participant is claiming rights or title to the property
  • The Purchase and Sale and the Terms and Conditions agreements, will be signed by both the participant and his or her spouse.
  • The surviving spouse* is subject to all conditions for Options A, B and C
  • Brown's option to buy back the property shall be a deed restriction and may not be subrogated or subordinated
  • Because of the encumbrances represented by Options A and B, the sale price to the participant will be set at 80% of the appraised market value of the home. This reduction in sales price reflects the value (or compensation for the encumbrance) of the Options retained by the University (see Appraisal Process) and the right to approve capital improvements
  • Repurchase price for Brown under either Option A, B or C is 80% of the appraised value at time of repurchase
  • For certain homes, Brown may require a right of entry and easement to do utility work for nearby properties
  • After the sale of the property, the Participant is responsible to pay all property related taxes and assessments, home owners insurance, and maintenance and repairs
  • Participant is entitled to all normal tax deductions as a home owner

* Spouse is defined as the married husband or wife of the participant or the same sex domestic partner of the participant. To be eligible as same sex domestic partners, the couple must meet certain criteria detailed in Brown's Declaration of Domestic Partnership requirements. (Domestic Partnership Forms)