Equity Sharing Agreements
Equity sharing agreements are becoming increasingly popular as a way to buy a home. However, there are a number of considerations to take into account before signing such an agreement.
The following are some key factors to consider when entering into an equity sharing agreement:
1. The nature of the agreement – is it a joint venture, partnership or something else?
2. The contribution of each party – what are the respective roles and financial input of each party?
3. The sharing of risks and rewards – how will profits and losses be shared between the parties?
4. The exit strategy – how will the parties exit the agreement and what will happen to the property thereafter?
5. The tax implications – what are the tax implications of the agreement for both parties?
6. The legal implications – what are the legal implications of the agreement?
7. The financial implications – what are the financial implications of the agreement for both parties?
8. Other considerations – are there any other key considerations that should be taken into account?
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