Term Ownership

Traditionally, families have been able to possess a home by either renting it or owning it.  Term Ownership is a third option. It will not replace the rental market.  It will not replace the traditional ownership market.  Instead, Term Ownership is merely one additional option for lenders/investors and consumers to consider for their residential and foreclosure prevention needs.

What is it?

Initially, Term Ownership was designed to help people without significant savings affordably bridge their way from renter to homeowner.  However, with the current foreclosure crisis permeating the markets throughout the U.S., Term Ownership also offers a profitable, bail-out free, foreclosure alternative which can help many homeowners save their homes while improving their lender's bottom line.

The "Bundle of Sticks"

Term Ownership is an ownership-centered, not rent-centered, financing system based on transferring less than the full "bundle of sticks" to the homeowner.  The "bundle of sticks" is an analogy commonly taught in U.S. first-year law school property classes to explain how a property can simultaneously be "owned" by multiple parties.  For example, a mechanic's lien takes some, but not all, rights from the owner's bundle of sticks - until the lien is paid off.  Paying off the lien returns those "sticks" to the owner.  In the United States (and under common law) the fullest possible title to real estate is called "fee simple absolute".

When property is sold, though, the seller does no have to sell all of the sticks.  One thing that they can do is hold back certain rights (such as a right to an ingress and egress easement).  Another thing that they can do is conditionally sell the property.  In a conditional sale, a breach of a condition either reverts the property to the seller, or it transfers the property to a third party.