What does Shared-Equity Transaction mean?
A shared-equity transaction is an agreement between a homeowner and an investor, where the investor provides a portion of the funds needed to purchase the property, and in return, the investor receives a share of the appreciation in the value of the property. This is a way for a home buyer to afford a property with less funds and also for an investor to share in the appreciation of the property. This type of transaction is also known as Shared Equity Homeownership.
Related Terms
Warranty
Acknowledgment
Addendum
Appraisal Fee
Adjustment Period
Loan-To-Value-Ratio (LTV)
Commencement Date
Title Company
Property Report
Maintenance Fee
Real Estate
Property Tax Deduction
Negative Amortization
Secondary Mortgage Market
Dual agency
Property disclosure
Planned-Unit Development
Modified Gross