| Equity Sharing |
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Equity sharing is a popular way for people with a low down payment or no down payment to buy a home. It is also a way for people to make relatively a low risk investment in real estate which provides wonderful tax benefits and does not require ongoing management or additional investment. It is also frequently used by parent wishing to help their cash-poor children buy their first home, and by employers wishing to attract and retain quality employees in areas where home ownership costs are high. To learn more about equity sharing legal services offered by Sirkin & Associates, visit Our Services.
In equity sharing, two parties, an "occupier" and an "investor", pool resources for the down payment on a home. They often jointly apply for a mortgage, and both names usually appear on the deed. For an agreed number of years, the occupier lives in the home, keeps it up, and makes all or most of the monthly payments. The investor sometimes contributes to major repairs and improvements. At the end of the agreed term, the occupier buys out the investor by repaying his contributions plus an agreed percentage of the appreciation. If the occupier doesn't want or can't afford the buyout, the property is sold, each owner gets their contributions, and any profits are shared. |
Equity Sharing 101
This pamphlet covers equity sharing basics: ownership and possession, financial contributions, repair and improvement, and owners' rights at the end of the equity share. |
The Home Equity Sharing Manual
A 187 page book providing the most thorough and comprehensive explanation of equity sharing available. Chapter topics include: Maximizing Tax Benefits, Calculating Ownership Percentages, Making Equity Sharing Happen: A Home Buyer's Guide, A Seller-Investor's Guide, and A Real Estate Agent's Guide. |
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| Real Estate Basics |
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| Many participants in equity sharing transactions are first-time home buyers. The articles, links and resources in this section provide basic information for these home buyers. |
First-Time Home Buyers Top 10 Issues
The process of buying and selling real estate is full of terms and procedures that are completely new to first-time buyers. This article will help you master the basics. |
Playing The Home Mortgage Game
Most first-time buyers find mortgages hopelessly complicated and arbitrary, and they are absolutely right. But a basic understanding of the players and the plays can make the loan qualification process considerably less frustrating. |
Home Ownership For Domestic Partners and Unmarried Couples
This pamphlet provides comprehensive information on real estate and home ownership by domestic partners and unmarried couples. |
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