What is a shared equity financing agreement?

A shared equity financing agreement is a written agreement where two or more people share ownership of a home, and one of them lives in the home as their primary residence.

More specifically:

• Two or more parties buy or own a home together.
• One party occupies the home as their principal residence.
• The owner who is not occupying the home receives rent or payments from the owner who occupies the home.
• Both parties share in the home's equity, appreciation and/or proceeds when the home is sold.