My manager at Coldwell Banker in 1991, concerning Equity-Share agreements, sale, transactions, etc., quipped, “they are full of land mines.” At that time, Coldwell Banker’s Northern California’s legal department was instructing their office managers to avoid Equity-Share agreements/sales.
Traditional Equity-Share agreements should be lengthy, cover all the “what if’s.” and be drafted by a real estate attorney. Since the fallout of the ’90’s, each buyer should consult with their own real estate attorney regarding the risks and benefits.
I’ve followed San Jose Real Estate Attorney David Hofmann since the late ’80’s. Among other things, he is an expert on Equity-Share agreements. Hoffman has drafted Equity-Share agreements between family members, employers/employees and the tradition buyer-investor/buyer-occupant.
Part 2 ~ In the next article on the risks and benefits of Equity-Sharing, I’ll include excerpts from my interview with Real Estate Attorney David Hofmann, as seen on Kapowich on Real Estate.