What is the Equity Appreciation Limit and how does that affect my payment to Unison during the Restriction Period?
Frequently Asked Questions
What is the Equity Appreciation Limit and how does that affect my payment to Unison during the Restriction Period?
To balance the investment return while Unison does not share in a decrease in property value, Unison places a limit on the maximum return on Unison’s equity investment if you end the agreement during the restriction period. This is called the Equity Appreciation Limit. During the first 12 months of the agreement, the limit is a fixed percentage. After the first 12 months of the agreement, the limit is compounded monthly (including partial months) on top of the fixed percentage. The Equity Appreciation Limit does not apply after the restriction period.