What is the Lending Equity Ordinance in Chicago?

Passed in September 2021, the Lending Equity Ordinance increases transparency around how financial institutions the City banks with are serving Chicago's communities in part as a response to findings that Chicago lenders had invested more in a single white neighborhood than all Black neighborhoods combined.

Shared Equity Agreements For Dummies In Chicago

Q: What are the cons of a HEA?

Cons You give up a portion of your home&#039;s future appreciation. Not available in all states. Only by select private lenders. May include upfront fees. Limits how much equity you can access. May include restrictions on how you can use, renovate, or sell your home.

Q: Are shared equity agreements good?

Home equity sharing may also be wise if you don&#039;t want extra debt reflected on your credit profile. &quot;These agreements allow homeowners to access their home equity without incurring additional debt,&quot; says Michael Crute, a real estate agent and operations strategist with Keller Williams in Atlanta.

Category:

Real Estate - Contracts - Equity

State:

Multi-State

City:

Chicago

Control #:

US-00036DR

Format:

Instant download

Description

The Equity Share Agreement is designed for individuals involved in shared equity ventures for real estate investments in Chicago, making it accessible for users, especially those with limited legal knowledge. The agreement outlines the responsibilities and rights of both parties—Investor Alpha and Investor Beta—regarding property purchase, financing, and profit distribution. Key features include the classification of ownership as tenants in common, the specification of financial contributions from each party, and how proceeds from a future sale are to be allocated. For filling and editing, users are prompted to complete sections regarding personal details, property description, payment terms, and financial commitments. This form is particularly useful for attorneys, partners, and associates as it clearly defines roles, expectations, and legal responsibilities, ensuring that parties understand the equity-sharing structure. Additionally, paralegals and legal assistants can assist clients in accurately completing the form, while it serves as a practical guide to reduce disputes in real estate investments. Overall, this agreement is an essential tool for navigating the complexities of shared property ownership in Chicago.

Convert debt to equity ratio to percentage

View this form

Comprehensive Agreement for Design Services

View this form

Reference Check Format Form

View this form

Form popularity

FAQ

The Shared Equity Investment Program (SEIP) supports shared equity models of community land trust (CLT) and limited equity and affordable housing cooperative (Cooperatives) development by providing up to $100,000 for each affordable unit in a building being acquired and associated carrying costs of CLT and Cooperative ...

Home equity sharing agreements involve selling a percentage of your home's value or appreciation to an investor in exchange for a lump sum upfront. The agreement typically is settled, with the homeowner paying back the investor, after the home is sold or at the end of a 10- to 30-year period.

Passed in September 2021, the Lending Equity Ordinance increases transparency around how financial institutions the City banks with are serving Chicago's communities in part as a response to findings that Chicago lenders had invested more in a single white neighborhood than all Black neighborhoods combined.

Commissioner Lissette Castaeda, Chicago Department of Housing - City Club of Chicago.

Cons You give up a portion of your home's future appreciation. Not available in all states. Only by select private lenders. May include upfront fees. Limits how much equity you can access. May include restrictions on how you can use, renovate, or sell your home.

Home equity sharing may also be wise if you don't want extra debt reflected on your credit profile. "These agreements allow homeowners to access their home equity without incurring additional debt," says Michael Crute, a real estate agent and operations strategist with Keller Williams in Atlanta.

Equity agreements commonly contain the following components: Equity program. This section outlines the details of the investment plan, including its purpose, conditions, and objectives. It also serves as a statement of intention to create a legal relationship between both parties.