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What is a Beneficial Interest?

Beneficial interest is defined as an individual’s right to benefit from a property or asset, regardless if they are legal owners of the property or asset.

At Ourboro, our beneficial interest, or ownership share, in the home is determined by how much each party contributes to the down payment.

Why is this term important?

Beneficial interest is important as it outlines each co-owner’s ownership share in the home, and how the appreciation will be divided among co-owners when the home is sold. 

Here is an example:

In a scenario where you and Ourboro each contribute 50% of the down payment, you each would have 50% of the beneficial interest in the property, and therefore have a 50% share in the home’s appreciation.

Related Terms

Co-ownership
Down Payment

Related Resources

How We Share Equity in the Home

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