Equity sharing

Equity sharing is a financial agreement where multiple parties share ownership of a property or asset. Typically, it involves an investor and a homeowner partnering to reduce upfront costs. The investor provides funds in exchange for a percentage of the property's value or future appreciation. This arrangement helps the homeowner access property ownership with less initial capital while the investor gains potential returns. Equity sharing aligns interests, as both parties benefit from the property's appreciation, but it also requires clear agreements on income, expenses, and eventual sale or occupancy terms to ensure fair sharing of benefits and responsibilities.