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Real Estate Glossary

What is Shared-Equity Transaction?

A shared-equity transaction is an agreement between a homeowner and an investor, where the investor provides a portion of the funds needed to purchase the property, and in return, the investor receives a share of the appreciation in the value of the property. This is a way for a home buyer to afford a property with less funds and also for an investor to share in the appreciation of the property. This type of transaction is also known as Shared Equity Homeownership.

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