Do You Still Own Your House in a Home Equity Agreement?

Home equity agreements, also known as home equity investments or shared equity agreements, let you access your home’s equity without monthly payments. In most cases, you still own your home because your name remains on the deed and you retain the right to live in, maintain, and control the property. The main difference is that you agree to share a portion of your home’s future value with the provider, typically secured by a recorded lien that must be settled when you sell, refinance, or the agreement ends.

In this article (Skip to...)

• What owning your home means
• How an HEA gets repaid
• What changes with an HEA
• What homeowners still control
• Can the HEA provider take your house?
• HEA settlement example
• FAQs

What does “owning your home” mean?

Owning your home means your name is on the deed and you have the right to live in, control, and maintain the property. With a home equity agreement (HEA), you keep legal title and remain the homeowner of record, but the provider gains a contractual financial interest in your home’s future value. An HEA separates legal ownership from economic interest: you keep control of the property while agreeing to share a portion of its future value, usually based on appreciation and the contract terms.

If you still own the home, how does an HEA get repaid?

Although the company is not added to the deed, it protects its interest by recording a lien or similar security interest against your property. This lien is filed in public records and notifies future lenders, buyers, and title companies that the agreement must be addressed before refinancing, selling, or taking on new secured debt. The lien does not transfer ownership but gives the provider legal standing to enforce repayment and ensures the agreement is settled when a triggering event, such as a sale, refinance, or end of term, occurs.

What changes for homeowners with an HEA?

An HEA changes your home’s financial structure, though your legal ownership remains the same. The agreement places a lien or recorded interest on the property, which can affect future financial decisions and the amount owed when the agreement ends.

• A lien or recorded claim against your home’s value.
• More complexity when refinancing or borrowing against the home.
• Settlement is required when you sell, refinance, or reach the end of the term.
• A payoff amount based on home value, not a fixed balance.
• Potentially higher repayment if your home appreciates.

What do homeowners still control after an HEA?

You continue to own and control your home after signing a home equity agreement, as the provider does not take title or record ownership on the deed. An HEA creates a financial interest in your home’s future value, not in daily control of the property, so your rights as a homeowner largely remain intact.

• Living in the home as your primary residence.
• Maintaining, renovating, and making design decisions.
• Paying property taxes and homeowners’ insurance.
• Handling maintenance and repairs.
• Deciding when to sell, refinance, or keep the home.

Can the HEA provider take your house?

In most cases, the HEA company cannot take your house simply because you entered into a home equity agreement, as you remain the legal owner and your name stays on the deed. However, the agreement is a secured obligation backed by a recorded lien, which gives the provider legal rights if contract terms are not met.

If you do not settle the agreement at a required trigger event, such as the end of the term, a sale, or a refinance, the provider may pursue enforcement actions allowed by the contract and law. You still own the home, but the agreement must be satisfied because it is a binding financial obligation attached to the property.

How HEA settlement works in a real scenario

If you receive a lump sum through a home equity agreement and later sell your home, the provider never takes ownership. Instead, the agreement is settled at closing based on the contract’s formula, which typically considers your home’s current market value and the provider’s agreed share of appreciation. You remain the legal owner throughout, and the obligation is similar to paying off a secured claim rather than transferring title.

• You keep your name on the deed the entire time.
• The HEA is paid from sale proceeds or other funds at settlement.
• The payoff amount is calculated based on the contract terms and the current home value.
• The provider’s lien or recorded interest is released after payment.
• Full, unencumbered equity returns to you upon satisfaction of the agreement.

Plan your next steps with an HEA

Before making any decisions, review your contract terms, estimated payoff, and how the agreement could affect a future sale or refinance. Understanding how the provider’s share of appreciation is calculated and when settlement is required can help you avoid surprises and plan your next steps confidently. Explore the options below to compare providers, estimate your potential obligation, and decide whether keeping, settling, or refinancing your agreement best fits your financial goals.

FAQs about home equity agreements and homeownership