Member Legal Services has published a revised legal article, Equity Sharing (March 11, 2008). It is available on Legal’s What’s New and the Legal Articles pages on C.A.R. Online. This article explains the advantages and disadvantages of equity sharing and provides a summary of the major issues to be addressed in an equity sharing agreement. Equity sharing is a form of ownership and investment that allows two or more parties to share an interest in real property. It is frequently used in situations where, because of the high cost of housing, one party, the investor, puts down the bulk of the down payment, and the other, the owner-occupant puts down little or no down payment but agrees to pay a monthly amount consisting of rental payments, mortgage payments, taxes, and other specified charges, and lives in the property.
