What happens when I decide to sell my home?
You can sell your home at any time. Whenever you choose to sell, you'll need to notify Unison and send us copies of certain documents related to the sale – the purchase sale agreement, appraisals, inspections, etc. When your sale of the home closes, you will pay Unison the amount you owe us out of escrow.
Since Unison's co-investment is not intended to be short-term financing, we will not share any loss in the value of the home if you sell it within the first five years.
What happens if I don't properly maintain my property and its condition deteriorates?
During the term of your agreement with Unison, you are required to maintain your property in good condition, subject to normal wear-and-tear.
If you do not, when the agreement ends the value of your property will most likely be less than it would have been if it had been properly maintained, and this would not be fair to Unison. When this is the case, a Deferred Maintenance Adjustment may apply when performing the settlement calculations.
Since the loss in value would be due to your failure to maintain the property, the Deferred Maintenance Adjustment allocates all of the loss in value due to improper maintenance to you, so that Unison does not share in it.
One or more appraisals, inspections or repair estimates obtained from independent third-party providers are used to determine the amount of the Deferred Maintenance Adjustment.
Unison is committed to a fair process to determine the amount of the Deferred Maintenance Adjustment. In a rare instance in which we are unable to agree in good faith on the amount, the issue will be determined through arbitration.
More detail about the Deferred Maintenance Adjustment can be found in the Unison HomeOwner Program Guide.
To learn more about default situations, click here.
Can I buy out Unison's investment in my home?
Our goal is to give you as much flexibility as possible. Unison allows you to request a Special Termination (buy out) after the first five years. We’ll use an independent third-party appraisal to determine the market value of your property at that time. Then you’ll pay us the same amount you would have paid if you had simply sold your home for its appraised value.
The biggest difference between selling your home and buying us out is that Unison will not share in any loss in your home's value when you buy us out.
Learn more about special terminations here.
What if I make home improvements?
We believe that if you make improvements to your home (beyond regular maintenance) that boost its value, you should get all the benefits. That’s why we use a tool called a Remodeling Adjustment.
To qualify for a Remodeling Adjustment, you need to work with licensed contractors and fully document the project. We then use an independent appraiser to determine how the work changed the value of your home, making sure you receive full benefits. Keep in mind that some renovations add more value than others and some don’t add any new value at all. Whenever you are thinking about a project it is always a good first step to reach out to our team. It’s important to note that the Remodeling Adjustment doesn’t apply if you end the agreement in the first three years.
What is the five-year “restriction period”? Can I sell my home at any time?
Since your home is yours, you are always free to sell it at any time during your agreement with us. However, Unison co-investments have a restriction period during which some features will not be available.
Sharing in the losses if you sell: In the case you wish to move in the first five years, the transaction would proceed as usual except if the home’s value has gone down. If that happens, Unison will not share in the loss and you would owe the full value of the Unison co-investment, regardless of the loss in home value.
Special Termination or "Buying Out" Unison: You cannot buy out the Unison agreement in the first five years.
Remodeling Adjustment: Unison will not share in the value you add via remodeling projects. However, you are eligible for a remodeling adjustment only after the third anniversary of your Unison agreement.
Note: Some agreements are only subject to a three-year restriction period on loss sharing and Special Termination. Check with your Unison representative to see which Restriction Period applies in your case.
What happens if there is a foreclosure?
Because we want the best for our shared investment, we see foreclosure as a last resort. If you’re ever unable to make payments on your mortgage, we may issue "Protective Advances," which are funds that keep you current and help you avoid default. You would have to pay these advances back when the home is sold.
Unison may also offer you something called an Orderly Sale to prevent your home from going to foreclosure and becoming a "distressed" property. This may help protect your home's value, and your credit as well. Of course, Unison does retain the right to foreclose on your home in situations where you have not met the obligations of our agreement.
What happens if I get behind on my mortgage payments? What happens if I default?
Unison technically has the right to foreclose on your property to protect its investment, similar to a lender. But we would much rather see you stay in your home. That's why we will always give you a chance to fix any default. As an investor in your property, we share your desire to protect the equity in the home. In certain circumstances, if you are facing foreclosure by your lender, we might work with you to sell your home in an orderly "non-distressed" fashion which would maximize the sale price, protect the equity in the home, and preserve your credit.
Who decides when our partnership ends? Can you force me to sell my house?
You always remain the sole owner of your property and can decide to sell your home at any time. After 30 years, you will need to either buy out Unison’s investment or sell the home.
If you ever find yourself unable to make your mortgage payments, Unison may work with you to find a resolution that is best for everyone, which could include the sale of your home.