Equity Sharing

Categories: Credit and Debt, Real Estate,

A form of collective partnership between an owner/investor and an owner/occupant. The investor takes deductions in the loss of value for his or her share of the ownership. For the occupant, a part of his or her monthly payment is treated as rent. Additionally, the occupant acquires part of the tax write-offs for interest and taxes. Both owners equally divide the profit once the property is sold. Compare to joint ownership.