An Equity Holding Trust is an especially complicated transaction, which nonetheless has its place as a superior transaction in many instances. This is likely the one real estate transaction most investors won’t offer because of its many moving parts.

To put it simply:

Generally, in Equity holding trust case, the property is put into a trust and certain percentages of the beneficial interest are assigned to the parties in the transaction. However, in this transaction, even though the buyer gets full ownership rights, the deed does not convey.

At the time the property is refinanced, the seller and buyer will likely agree upon a sales price or they can choose to sell the house at its appraised value. They can then split the property appreciation from the time the agreement began among the parties as originally agreed, or give it to one individual.


The overall benefits of this type of transaction are numerous:

  • Faster sale,
  • Larger pool of buyers,
  • Seller doesn’t have to be a landlord,
  • Easier “eviction” process if buyer stops paying,
  • Overall flexibility,
  • Possible share in property appreciation,
  • Depending on the structure of the trust, no “due on sale” clause trigger.

Equity holding trust is a complicated process and Markette Properties can help you with that.