SKYIRE HomePlan Participation Option
The Participation Option allows you to fully participate in market appreciation of your home. When the time comes to exercise your Right-to-Purchase, you will notify your HomePlan contact that you want to close on your home. The HomePlan investor is notified and two independent market evaluation appraisals are done. A Completion Form is sent to you that include the final purchase price (based upon the appraisals) and the accumulated credit you have earned through your monthly payments. Your HomePlan contact coordinates a final closing date. A notice is provided to the law office handling the title transfer/mortgage registration and will include a calculation of closing proceeds.
SKYIRE HomePlan Exit Scenarios − Participation Option
|1. The HomePlan purchaser builds-up enough equity in the home to close in 4-7 years.||The HomePlan tenant would purchase the home based on the market value (min. yearly CPI increase) at the time of completion of the purchase. The HomePlan tenant earns their share of the mortgage pay down and proportionally participates on any market value appreciation of the home. Typical real estate commissions would apply against the sale of the property and are paid out of the HomePlan investor’s proﬁt in the transaction.|
|2. The HomePlan tenant obtains additional funds and is able to close within 1-3 years.||Subject to the minimum one-year appreciation amount required to cover the HomePlan investor’s transaction costs, including transfer tax and legal fees, the HomePlan tenant would earn their share of mortgage pay down along with a proportional participation in the market value appreciation in the home.|
|3. The HomePlan tenaant is unable to proceed at the end of the 7-year term of the agreement.||If the HomePlan tenant is unable to or elects not to proceed with completing the purchase at the end of the term, they do not participate in the mortgage pay down or in the potential market value appreciation of the home. The home would be listed for sale and based upon the actual sale price (assuming it is above the original purchase price) the HomePlan tenant would have the opportunity to receive their contributed equity back upon the sale. The HomePlan investor has the option of matching the best offer received during the listing process and paying out the HomePlan tenant.|
|4. The HomePlan tenant needs to move prior to the end of the term and is no longer able to stay in the home.||The HomePlan tenant would be responsible for listing the home for sale (as they would be if they were already the owner) and would cover the costs and commissions of re-selling it out of their contributed equity. Depending on the price of the best offer received, the HomePlan investor has the choice of buying out the HomePlan tenant for the net amount due after costs and commissions from that best offer. If the HomePlan tenant arranges for the sale without missing any normal monthly payments they are still eligible to exercise their right and receive the beneﬁt of the mortgage pay down as well as proportionally participate in the appreciation of the home.|
|5. The HomePlan tenant elects to exercise their right to purchase but without closing based on having an alternative buyer willing to pay more.||In the case of a quickly rising housing market, the HomePlan teant is able to take advantage of their right-to-purchase by first finding a new buyer (by listing the property or other marketing efforts) and then exercising their right. The sale would transact at the price they received the offer for and the HomePlan tenant would participate in the appreciation and mortgage pay down. Any commission payable from the marketing efforts the HomePlan tenant organizes is to be first paid out of the HomePlan tenat profit.|