Gift Of Equity

Gift Of Equity
The sale of a home made to a family member or someone with whom the seller has had a previous relationship, at a price below the current market value. The difference between the actual sales price and the market value of the home is called the gift of equity. Most lenders allow the gift to count as a down payment on the home.

A gift of equity requires a gift of equity letter that is signed by both the seller and the buyer. A gift of equity can have tax consequences, as it could impact the asset's cost basis for the new homeowner and have capital gains implications for the seller.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • equity — Justice administered according to fairness as contrasted with the strictly formulated rules of common law. It is based on a system of rules and principles which originated in England as an alternative to the harsh rules of common law and which… …   Black's law dictionary

  • equity — Justice administered according to fairness as contrasted with the strictly formulated rules of common law. It is based on a system of rules and principles which originated in England as an alternative to the harsh rules of common law and which… …   Black's law dictionary

  • gift of public money — Any appropriation of public money for the benefit of one who has no claim to be compensated which is enforceable at law or in equity, irrespective of what the moral obligation may be under the circumstances. Conlin v San Francisco Board of… …   Ballentine's law dictionary

  • Maxims of equity — The maxims of equity evolved, in Latin and eventually translated into English, as the principles applied by courts of equity in deciding cases before them.[1] Among the traditional maxims are: Contents 1 Equity regards done what ought to be done… …   Wikipedia

  • property law — Introduction       principles, policies, and rules by which disputes over property are to be resolved and by which property transactions may be structured. What distinguishes property law from other kinds of law is that property law deals with… …   Universalium

  • India — /in dee euh/, n. 1. Hindi, Bharat. a republic in S Asia: a union comprising 25 states and 7 union territories; formerly a British colony; gained independence Aug. 15, 1947; became a republic within the Commonwealth of Nations Jan. 26, 1950.… …   Universalium

  • trust — A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of the state and the valid trust instrument. The trustee holds a fiduciary responsibility to manage the trust s corpus assets and income for the… …   Black's law dictionary

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • O'Neill v. Phillips — [1999] 1 WLR 1092; [http://www.publications.parliament.uk/pa/ld199899/ldjudgmt/jd990520/neill01.htm UKHL 20 May 1999] , is a UK company law case on an action for unfair prejudice under s.459 Companies Act 1985 (now s.994 Companies Act 2006). It… …   Wikipedia

  • O'Neill v Phillips — Court House of Lords Date decided 20 May 1999 Citation(s) [1999] UKHL 24, [1999] 1 WLR 1092 Case opinions Lord Hoffmann …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”