sch.1-sec.7Meaning of shared equity arrangement

sch.1-sec.7 Meaning of shared equity arrangement

Meaning of shared equity arrangement Subject to subsection (2) , a shared equity arrangement in relation to a residential property is an arrangement or contract with one or more individuals: under which Housing Australia, on behalf of the Commonwealth: contributes (including by means of a loan) part of the cost of the individual or individuals acquiring the residential property; and is entitled to a return on that contribution worked out, in whole or in part, by reference to the value of the residential property at one or more times; and secures that entitlement by means of a mortgage or other right relating to the residential property; or that is prescribed by the regulations for the purposes of this paragraph. An arrangement or contract prescribed by the regulations for the purposes of this subsection is not a shared equity arrangement in relation to a residential property. Variations Subject to subsection (5) , enter into a shared equity arrangement does not include vary a shared equity arrangement (even if the variation changes the parties to the arrangement). Subsection (5) applies in relation to varying a shared equity arrangement if: after the variation, the shared equity arrangement relates to particular residential property; and before the variation, the arrangement did not relate to that particular property. This Act applies in relation to the variation in the same way as it applies in relation to entering into a shared equity arrangement in relation to that particular residential property. A reference in subsections (3) to (5) to vary a shared equity arrangement includes a reference to: vary a shared equity arrangement by entering into an agreement that varies the arrangement; or agree to vary a shared equity arrangement. (sch.1-sec.7-ssec) Meaning of shared equity arrangement (sch.1-sec.7-ssec.1) Subject to subsection (2) , a shared equity arrangement in relation to a residential property is an arrangement or contract with one or more individuals: under which Housing Australia, on behalf of the Commonwealth: contributes (including by means of a loan) part of the cost of the individual or individuals acquiring the residential property; and is entitled to a return on that contribution worked out, in whole or in part, by reference to the value of the residential property at one or more times; and secures that entitlement by means of a mortgage or other right relating to the residential property; or that is prescribed by the regulations for the purposes of this paragraph. (sch.1-sec.7-ssec.2) An arrangement or contract prescribed by the regulations for the purposes of this subsection is not a shared equity arrangement in relation to a residential property. (sch.1-sec.7-ssec-oc.2) Variations (sch.1-sec.7-ssec.3) Subject to subsection (5) , enter into a shared equity arrangement does not include vary a shared equity arrangement (even if the variation changes the parties to the arrangement). (sch.1-sec.7-ssec.4) Subsection (5) applies in relation to varying a shared equity arrangement if: after the variation, the shared equity arrangement relates to particular residential property; and before the variation, the arrangement did not relate to that particular property. (sch.1-sec.7-ssec.5) This Act applies in relation to the variation in the same way as it applies in relation to entering into a shared equity arrangement in relation to that particular residential property. (sch.1-sec.7-ssec.6) A reference in subsections (3) to (5) to vary a shared equity arrangement includes a reference to: vary a shared equity arrangement by entering into an agreement that varies the arrangement; or agree to vary a shared equity arrangement.