Occupancy & Equity Sharing

Some important ownership occupancy issues to consider in an equity share arrangement include:

The occupying owner in an equity share agreement should have an exclusive right of occupancy to the property. This right should not be able to be arbitrarily usurped by the investing owner without a defined cause (such as failure to make timely payments or adequately maintain the property).

Renters: The most common idea behind an equity share is that one owner intends to live in the property. Renting the unit puts the investor at more risk as the renter has little incentive to maintain or improve the property. Under certain circumstances the occupying owner may be able to rent the property. However the equity share agreement should require the investors consent. It should also define who is responsible for property management for the rental unit, how the rental income will be divided (if at all), and the parameters by which a prospective renter will be approved by the landlords.