ContractsCounsel Logo

Shared Equity Agreement

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 9,787 reviews
No Upfront Payment Required, Pay Only If You Hire.
Home Types of Contracts Shared Equity Agreement

Jump to Section

A shared equity agreement is a financial arrangement in which two or more parties jointly own any asset and then share its equity per their requirements. Such an agreement type is often used in real estate transactions. It happens mainly when individuals or entities want to collaborate on purchasing a property. Let us delve deeper and learn more about the essential aspects of a shared equity agreement below.

Primary Purposes of a Shared Equity Agreement

A shared equity agreement serves several purposes. Its work often depends on the context and the parties involved. Here are some common objectives and functions of this particular agreement:

  • Ensuring Property Ownership: A shared equity agreement outlines the ownership structure of a property when multiple parties are involved. It specifies the percentage of ownership each party holds and their respective rights and responsibilities.
  • Checking Financial Arrangement: The agreement defines how the initial purchase price and ongoing costs (such as property taxes, maintenance, and insurance) will be shared among the co-owners. It may also address how any financing or mortgage obligations are distributed.
  • Allowing Investment and Return: A shared equity agreement in real estate allows parties to invest jointly in a property. As the property's value changes over time, the agreement outlines how the appreciation or depreciation will be distributed among the co-owners when the property is sold or if there are changes in ownership.
  • Taking Affordable Housing Initiatives: Shared equity agreements can be used in affordable housing programs to help individuals or families purchase homes at a reduced cost. Government agencies or nonprofit organizations may provide funding or assistance in exchange for a share of the property's equity.
  • Sharing Risks: Co-owners share both the benefits and risks associated with the property. It can include fluctuations in property values, changes in the local real estate market, and unexpected expenses.
  • Addressing Exit Strategy: The agreement typically addresses what happens if one or more co-owners want to sell their share of the property. It may include provisions for selling the entire property, allowing existing co-owners to buy out the departing owner, or bringing in new co-owners.
  • Providing Legal Protection: A well-drafted shared equity agreement provides legal clarity and protection for all parties involved. It helps prevent misunderstandings and disputes by clearly defining the terms and conditions of the arrangement.
  • Specifying Duration and Termination: The agreement may specify the duration of the shared equity arrangement and under what circumstances it can be terminated. It is essential to provide clarity on the long-term commitment of the co-owners.

Benefits of Shared Equity Agreements

A shared equity agreement can offer several benefits to the parties involved. These advantages often depend on their goals and the specific terms of the agreement.

  • Ensuring Affordability: Shared equity agreements can make homeownership more affordable for individuals or families, particularly in expensive real estate markets. Co-owners can access homeownership that might otherwise be financially challenging by sharing the costs and financial responsibilities.
  • Accessing Housing Markets: Shared equity arrangements can enable individuals who might not qualify for a mortgage on their own to enter the housing market. It is often the case in affordable housing initiatives where government agencies or nonprofit organizations provide support.
  • Investing Collaboratively: For investors, a shared equity agreement allows for a collaborative investment in real estate. It allows multiple parties to pool their resources and jointly benefit from the property's financial performance.
  • Assuring Equitable Distribution of Appreciation: When the property's value increases over time, the shared equity agreement ensures that the appreciation is distributed among the co-owners based on their agreed-upon ownership percentages. It can be a substantial financial benefit.
  • Offering Flexible Ownership Structures: Shared equity agreements offer flexibility in structuring ownership arrangements. Parties can customize the agreement to fit their needs and preferences, such as determining ownership percentages, decision-making processes, and exit strategies.
  • Sharing Decision-Making: The agreement can outline how decisions related to the property will be made. This collaborative decision-making process can help prevent conflicts and ensure that all co-owners have a say in important matters.
  • Assisting in Down Payment: In some shared equity arrangements, one party may provide financial assistance for the down payment, making it easier for another party to enter the housing market. It is common in affordable housing programs.
  • Fostering Community and Social Benefits: Shared equity arrangements can foster community and shared responsibility among co-owners, particularly for affordable housing initiatives aiming to create stable and sustainable communities.
Meet some lawyers on our platform

Darryl S.

28 projects on CC
View Profile

Benjamin W.

74 projects on CC
View Profile

Richard N.

111 projects on CC
View Profile

Kelvin R.

22 projects on CC
View Profile

Types of Shared Equity Agreements

There are various types of shared equity agreements. Each document has specific terms that can be different depending on the parties' preferences.

  • Shared Ownership Agreement: A legal document delineates the co-ownership structure and specifies ownership percentages. It also outlines financial responsibilities and the decision-making process. The shared ownership agreement provides a framework for collaborative property ownership by establishing clear terms.
  • Tenancy in Common: A form of property ownership in which each co-owner possesses a distinct, separately transferable interest in the property. Unlike joint tenancy, owners can hold unequal shares and retain the ability to sell, mortgage, or transfer their share independently of other owners.
  • Joint Tenancy: It represents a co-ownership model where each party holds an equal and undivided interest in the property. Notably, joint tenants enjoy the right of survivorship, meaning that if one owner passes away, their share automatically transfers to the surviving joint tenant(s).
  • Limited Partnership: Investors (limited partners) contribute funds to this partnership, while a general partner manages the property. Limited partners have limited liability, and the general partner assumes greater management responsibility.
  • Equity Sharing Agreement: The agreement outlines how equity will be shared, addressing scenarios like property sales. This arrangement proves to be beneficial for individuals without any financial means for a down payment.
  • Community Land Trusts: These nonprofit organizations acquire and hold land to benefit a community. In this model, individuals may own structures on the land, but the trust owns the land itself.
  • Employee Shared Ownership Schemes: These initiatives allow companies to offer shares to employees as part of their compensation. It often aligns the interests of employees with the company's success.
  • Cooperative Housing: It involves residents collectively owning and managing the entire property through a cooperative corporation. Each resident owns shares in the cooperative, granting them the right to occupy a specific unit.
  • Affordable Housing Programs: These are often implemented by government or nonprofit organizations that utilize shared equity agreements to make homeownership more accessible.

Key Terms for Shared Equity Agreements

  • Equity Sharing Ratio: The predetermined percentage that each party in a shared equity agreement owns, dictating their share of the property's value and any financial gains or losses.
  • Right of First Refusal: A provision granting co-owners the opportunity to purchase an outgoing co-owner's share before it is offered to external buyers, maintaining control over ownership.
  • Appreciation Sharing: The agreed-upon method for distributing any property value increase among co-owners, often based on their respective ownership percentages.
  • Exit Strategy: A predefined plan outlining the procedures for a co-owner to sell or transfer their share, ensuring a transparent and fair process for all parties involved.
  • Occupancy Rights: Stipulations detailing how and when co-owners can use or occupy the shared property, addressing primary residence and temporary or permanent relocation.

Final Thoughts on Shared Equity Agreements

A shared equity agreement represents a versatile and collaborative approach to property ownership, offering a range of benefits for diverse circumstances. Whether aiming to increase affordability in real estate, foster communal living, or provide employees with a stake in a company, these agreements provide a structured framework for co-ownership. The carefully crafted terms within these agreements, such as ownership percentages, financial responsibilities, and exit strategies, contribute to transparency and minimize potential conflicts. While promoting shared benefits, shared equity agreements acknowledge and distribute risks among co-owners.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, Click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Shared Equity Agreement Lawyers

Tayane O. on ContractsCounsel
View Tayane
Member Since:
December 4, 2023

Tayane O.

Attorney
Free Consultation
Boca Raton, Florida
7 Yrs Experience
Licensed in FL
Nova Southeastern University, Shepard Broad College of Law

Tayane M. Oliveira is a founding partner at Vannucci Oliveira. With a concentration in family law, Tayane is renowned for her commitment to providing compassionate yet powerful representation to her clients. Her experience as an associate attorney at Brodzki Jacobs & Brook, coupled with her unwavering dedication to her clients' welfare, prepared her for her current role at Vannucci Oliveira. Tayane's academic achievements are a testament to her rigorous intellectual curiosity and dedication to her profession. She graduated with a Bachelor of Arts degree in Criminal Justice, supplemented by a minor in Psychology, from Florida Atlantic University in 2013. The culmination of her academic pursuit came in 2017, when she earned her Juris Doctor degree, cum laude, from the esteemed Nova Southeastern University's Shepard Broad College of Law. Before co-founding Vannucci Oliveira, Tayane honed her skills in the heat of the courtroom, representing clients in an array of general civil litigation matters. This diversified exposure instilled in her an ability to tackle complex legal challenges, a skill she employs to benefit her clients in family law. Originally from Brazil, Tayane brings an international perspective to her practice. When not delving into legal briefs or advocating for her clients, she indulges in travelling, reading, spoiling her puppies, and exercising, activities that not only rejuvenate her but also provide her with a broader perspective on the world and her practice. *Supreme Court Certified Portuguese Speaking Mediator

McCoy S. on ContractsCounsel
View McCoy
Member Since:
December 4, 2023

McCoy S.

Founding Attorney
Free Consultation
Portland, Oregon
33 Yrs Experience
Licensed in CA, NY, OR, WA
University of Virginia

P. McCoy Smith is the Founding Attorney at Lex Pan Law LLC, a full-service technology and intellectual property law firm based in Portland, Oregon, U.S.A and Opsequio LLC, an open source compliance consultancy. Prior to his current position, he spent 20 years in the legal department of a Fortune 50 multinational technology company as a business unit intellectual property specialist; among his duties was setting up the free & open source legal function and policies for that company. He preceded his in-house experience with 8 years in private practice in a large New York City-based boutique intellectual property law firm, working simultaneously as a U.S. patent litigator and U.S. patent prosecutor. He was also a patent examiner at the U.S. Patent & Trademark Office prior to attending law school. He is licensed to practice law in Oregon, California & New York and to prosecute patent applications in the U.S. Patent & Trademark Office; he is also a registered Trademark and Patent Agent with the Canadian Intellectual Property Office. He has degrees from Colorado State University (Bachelor of Science, Mechanical Engineering, with honors), Johns Hopkins University (Masters of Liberal Arts) and the University of Virginia (Juris Doctor). While in private practice, and continuing into his in-house career, he taught portions of the U.S. patent bar exam for a long-standing and well-known patent bar exam preparation course, and from 2014-2020 was on the editorial board of the Journal of Open Law, Technology & Society (JOLTS), and starting in 2023 will be on the editorial board of the American Intellectual Property Law Quarterly Journal (AIPLAQJ). He is the author or co-author of chapters on open source and copyright and patents in “Open Source Law, Policy & Practice” (2022, Oxford University Press). He lectures frequently around the world on free and open source issues as well as other intellectual property topics.

Eliza J. on ContractsCounsel
View Eliza
Member Since:
December 6, 2023

Eliza J.

Family Law Attorney
Free Consultation
REMOTE
3 Yrs Experience
Licensed in CA
JFKU SCHOOL OF LAW

Eliza brings a distinguished track record of delivering outstanding results for her clients, showcasing expertise across a spectrum of legal areas. Eliza is not just an attorney; she's your dedicated advocate with a proven record of achieving excellent results for her clients. Her representation spans numerous family law cases, including dissolutions, custody, support, probate, and civil litigation matters. Eliza's unique background as a Registered Nurse and licensed Attorney sets her apart. Before establishing her law practice, she served as a Registered Nurse in various hospitals across Los Angeles and the Bay Area. Notably, she contributed to prominent institutions such as Los Angeles County Public Health and the City of Anaheim. Additionally, Eliza ventured into entrepreneurship, managing her own Professional Fiduciary and Consulting business. Her legal acumen extends to civil litigation, personal injury, medical malpractice, nursing home abuse, worker's compensation, and family law matters. Eliza earned her Bachelor's Degree in Nursing and Public Health from CSU Dominguez Hills. In 2008, she furthered her education, obtaining a Master's Degree in Nursing, Administration, and Healthcare Management, along with a Quality Improvement Certificate. Eliza culminated her academic journey by earning her law degree from the JFK University of Law in 2016. Eliza's multidisciplinary background uniquely positions her to navigate the intricacies of legal matters, offering a comprehensive and compassionate approach to her client's diverse needs. Eliza's diverse background uniquely positions her to understand and address your legal needs comprehensively. Trust her to navigate your case with care and dedication, ensuring you receive the support you deserve.

Kenneth W. on ContractsCounsel
View Kenneth
Member Since:
December 6, 2023

Kenneth W.

Lawyer
Free Consultation
Mount Laurel Township
5 Yrs Experience
Licensed in NJ
Elisabeth Haub School of Law at Pace University

Committed to a career in advocacy as an attorney, educator, and consultant, I specialize in education, family, personal injury, and criminal law. While at John Rue & Associates LLC, I led litigation and alternative dispute resolution, handling complex class-action lawsuits involving discrimination, privacy, administrative, and education law. I also directed conflict resolution through mediation, reducing costs and securing favorable client outcomes. While in law school, I served as a law clerk at Wilson Elser, excelling in crafting answers, overseeing discovery, attending depositions, and conducting exhaustive legal research. My responsibilities extended to preparing deposition summaries, assisting in motion practice, drafting persuasive briefs, evaluating cases, and contributing to trial preparations. I thrived in managing client affairs, supporting colleagues, and ensuring compliance with relevant laws. I am eager to explore opportunities to contribute my skills and passion to impactful projects aligned with client needs. I look forward to discussing opportunities and demonstrating how my qualifications will meet client needs.

Adam T. on ContractsCounsel
View Adam
Member Since:
December 7, 2023

Adam T.

Business Lawyer
Free Consultation
Seattle, Washington
12 Yrs Experience
Licensed in DC, NC, NY, WA
Duke Law

Legal professional with 10+ years of Fortune 500 in-house and AmLaw 50 law firm experience in crafting multi-pronged litigation, regulatory, and public policy strategies and negotiating pioneering, high-stakes global cloud services and digital content distribution deals.

Carmen M. on ContractsCounsel
View Carmen
Member Since:
December 8, 2023

Carmen M.

M&A / Commercial Attorney / Managing Partner
Free Consultation
Raleigh, North Carolina
32 Yrs Experience
Licensed in NC, NJ
Seton Hall Law School

Carmen Joseph Marzella is the founder and Managing Partner of the Marzella Law Group, PLLC. Carmen focuses his practice on providing legal counsel to small and mid-sized businesses, with particular concentration on Franchising, Purchase and Sale of Business, Commercial Transactions, Partnerships and Joint Ventures and Commercial Leasing, and the Purchase and Sale of Commercial Real Estate. Carmen has a diverse background with significant experience in Business and Restaurant Development, Commercial Litigation, Complex Commercial Transactions, Stock and Asset Sales and Acquisitions, Complex Commercial Real Estate Transactions, Real Estate Development, Environmental, and Project Finance. Carmen is frequently consulted regarding the succession of a closely held or family business, estates, estate planning, and trusts. Carmen also provides counsel to Franchisees in a variety of industries on the formation, operation and expansion of their business networks, franchise related disputes, financing, and franchise sales and acquisitions. Carmen has represented clients in numerous states around the country. In addition to his impressive professional credentials, Carmen was a multi-unit franchise owner of Dunkin’ Donuts / Baskin Robbins stores and has served on the Dunkin Brands, Inc. Brand Advisory Council as the Combo-store Representative. He has also served on the Dunkin’ Donuts Regional Advisory Council for the Southeast Region.

Ido A. on ContractsCounsel
View Ido
Member Since:
December 11, 2023

Ido A.

Owner, Law Firm
Free Consultation
Fort Lauderdale, FL
16 Yrs Experience
Licensed in FL
J.D., University of Miami

Ido Alexander is dedicated to helping his clients identify risks and understand how to navigate the unknowns. He has a keen ability to sort through the noise to develop strategies for growth and advance clients' interests. An experienced counsel, he focuses on finding solutions for businesses, estate planning needs, helping resolve complex and strategic disputes, and at times restructuring through bankruptcy or out of court, while keeping his clients' financial health as the top priority.

Find the best lawyer for your project

Browse Lawyers Now

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Business lawyers by top cities
See All Business Lawyers
Shared Equity Agreement lawyers by city
See All Shared Equity Agreement Lawyers
related contracts
See More Contracts
other helpful articles

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city