What is Transfer of Equity?

Answer by  scwriter007 (254)

Equity is the value of real estate less any liens or encumberances. A property with a market value of $20,000 and a $5,000 mortgage on it would have $15,000 of equity. Transfer of equity is simply selling or giving possession or control of that value to a person or business.

Answer by  ABCD14 (14)

The transferring ownership of share or interest in a property from one person to another.It could be that a person is added on the property or removed from the property.A Transfer of equity is done when a person sell his automobile to another person before the mortgage is recorded on his title has fulfilled.

Answer by  janedoe (701)

Equity is the value of property minus incumbrances. Example: home equity = value of the home - mortgage. When you transfer the equity of something, you are transferring it's value.

Answer by  tamarawilhite (17883)

Transfer of equity is when you give away your rights to your share of equity in real estate. You then cannot get that equity back if the property is sold.