### What is a live-in partnership in the context of real estate? - [x] Both parties live in the home and each owns a percentage of the property - [ ] One party lives in the home while the other party is an investor - [ ] Both parties invest but neither live in the property - [ ] The property is managed by a third-party agency > **Explanation:** In a live-in partnership, both parties live in the property and have an ownership stake in it. Each partner owns a percentage of the home, and they share responsibilities as homeowners. ### What characterizes a shared equity partnership in real estate? - [ ] Both parties live in the home and each owns a percentage - [ ] Both parties invest but neither uses the property - [ ] The property is leased to a third party and profits are shared - [x] One buyer lives in the home and the other buyer is an investor > **Explanation:** A shared equity partnership involves one party living in the property while the other party acts as an investor. This allows the resident to achieve homeownership with reduced financial obligation, while the investor contributes capital and earns a return on investment. ### Why is it potentially more risky to enter into a partnership to purchase real estate compared to buying solo? - [ ] Because partnerships are illegal in many states - [ ] Because it complicates acquiring housing grants - [x] Because your financial health is linked to your partner's financial background and history - [ ] Because banks typically offer higher interest rates to partnerships > **Explanation:** Entering into a real estate partnership can be more risky because you are not only considering your financial stability but also the financial history and reliability of your partner. The partnership's success hinges on both parties' financial health and the ability to collaborate effectively. ### What is a wise step to take when forming a real estate partnership to avoid future disputes? - [ ] Ignore financial backgrounds to maintain trust - [ ] Agree to terms verbally and avoid legal complications - [x] Set up a method of dispute resolution in the initial mortgage contract - [ ] Hire a third-party mediator immediately > **Explanation:** Including a method of dispute resolution in the initial mortgage contract is a prudent move. It creates a formal agreement on how to handle disagreements, which can prevent conflicts from escalating and affecting the partnership adversely. ### In a live-in partnership, what do partners mutually share? - [ ] Only financial responsibilities - [x] Both living arrangements and ownership percentages - [ ] Only the mortgage payments and taxes - [ ] The property with a third party > **Explanation:** In a live-in partnership, the partners share both the living arrangements and ownership of the property. This means they both personally reside in the home and co-own a percentage of it. ### In a shared equity partnership, what does the investor typically expect in return? - [ ] Getting discounted rent - [x] Earning a return on their investment - [ ] Right to dictate usage of the property - [ ] Full ownership after a few years > **Explanation:** The investor in a shared equity partnership contributes capital expecting a return on their investment. They do not live in the property but seek compensation through the appreciation of the property value or regular payments agreed upon with the resident buyer.