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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