Equity Sharing Agreement

Investor/Co-Owner A: [Name] · Occupant/Co-Owner B: [Name] Property: [Address] · Date: [Date]

1. Co-Ownership

The parties will jointly purchase/own the property described above as [tenants in common], with ownership shares of: Co-Owner A: [%], Co-Owner B: [%], based on their respective financial contributions.

2. Occupancy

Co-Owner B will occupy the property as their primary residence and pay Co-Owner A "rent" of [Amount] per month on Co-Owner A's ownership share, in lieu of Co-Owner A receiving no benefit from their investment while not living there.

3. Expenses

Mortgage, property tax, insurance, and major repairs are split [per ownership percentage / another formula], while routine maintenance is Co-Owner B's responsibility as occupant.

4. Term and Buyout

This arrangement runs for [Term/until a triggering event]. At that point, Co-Owner B has the option to buy out Co-Owner A's share at [fair market value, per an independent appraisal], or the property will be sold and proceeds split per ownership percentage plus any adjustments for unequal contributions.

5. Appreciation/Depreciation

Any increase or decrease in property value is shared per ownership percentage upon sale or buyout.

6. Default

[State what happens if either party fails to pay their share of expenses — e.g. cure period, then adjustment of ownership percentage or forced sale.]

Co-Owner A: ______________________ Date: ____________ Co-Owner B: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. Equity sharing arrangements are genuinely useful for helping a family member or friend get into homeownership with investor help, but the buyout formula (Section 4) needs to be crystal clear from day one — vague valuation language is the single biggest source of disputes when it's time to actually settle up.*