 Sam
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Joined: 21 May 2005
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Location: CALIFORNIA
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 Posted: Thu Jul 01, 2004 2:33 am Post subject: Shared Equity Transaction A Know-How |
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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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