What is the legal definition of equity?

Get Legal Help Today

 Secured with SHA-256 Encryption

What is the legal definition of equity?

My marriage settlement agreement states that I
am owed 35 od the equity in the property.
What constitutes equity? Does that include
closing costs, comission, etc accrued by the
other party?

Asked on August 30, 2019 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Equity is the difference between the market value (e.g. what it is sold for) and the mortgate or other loans or liens on the home. However, when the home is sold, closing costs (including commissions) are taken out of the purchase price first, since they *must* be paid before, calculating equity or distrubing proceeds. So in practice, you have to take out any costs to be paid by the seller in selling; then pay off loans or liens; and the remaining balance, if any is the equity.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption