Equity Sharing

An occupier and an investor pool resources for the down payment on a home.

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 SirkinLaw APC, 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.

Sample Equity Sharing Agreements

This page explains the various types of sample equity sharing agreements and related documentation that we offer, and links to each of the equity share documents available to download.

Sample Basic Equity Sharing Agreement

A simple equity sharing contract that provides basic protection using a minimum number of documents. It does not attempt to create investor tax benefits. Suitable for use among family members or friends where the investor is not seeking tax savings.

Sample Equity Sharing Agreement For Investor Tax Benefits

An equity sharing contract structured to generate investor tax benefits. It provides basic protection using a minimum number of documents. Suitable for use among family members or friends where the investor is seeking tax savings.

Sample Equity Sharing Agreement With Extra Investor Security

An equity sharing contract to be used with an equity sharing trust deed or mortgage to provide added investor protection. This version does not attempt to create investor tax benefits.

Sample Equity Sharing Agreement With Extra Investor Security and Investor Tax Benefits

An equity sharing contract to be used with an equity sharing trust deed or mortgage to provide added investor protection, and also to generate investor tax benefits.

Sample Equity Sharing Note and Trust Deed

Form for a promissory note and trust deed to be used with an equity share agreement (in trust deed states). This document is intended to further protect the equity sharing investor from the risk of default by the equity share occupant.

Sample Equity Sharing Mortgage

Form for a mortgage to be used with an equity sharing agreement (in mortgage states). This document is intended to further protect the equity sharing investor from the risk of default by the equity share occupant.