Home Equity Agreements

About Home Equity Agreements

Shared equity agreements are arrangements in which two or more parties share ownership in a property. In a shared equity agreement, one party, typically the homeowner, agrees to sell a portion of their equity in the property to the other party, typically a private investor or a government agency. The terms of the agreement will specify the amount of equity that is being sold and the percentage of ownership that the investor will receive. Shared equity agreements can provide homeowners with an alternative way to access the equity in their home, and they can offer investors the opportunity to earn a return on their investment. However, shared equity agreements can be complex, and it is important to carefully consider the potential risks and benefits before entering into one.