Shared Equity Transaction A Know-How

Sam

Shared Equity Transaction is a transaction which involves a written agreement between a buyer and a private investor. This allows a buyer to purchase a new property in partnership with the private investor.

Features of Shared Equity Transaction:

Two Buyers - It is a transaction in which two buyers purchase a property, one as a resident co-owner and other as an investor co-owner.
Equity Sharing - In this type of transaction, a private investor shares equity with the buyer of the house.
Co-ownership - Here a private investor contributes money towards the purchase of the house and gets the title of co-owner.
Profit/loss Share - The private investor gets the share of profit/loss from the buyer, when the house is sold.
Conflicts of interest - Here a certain degree of conflict of interest may develop between the buyer and the private investor, on the issue of money transactions.

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