Declining balance co-ownership financing arrangement
First Claim
1. A method for a consumer to finance a property without making interest payments, the method comprising the steps of:
- providing the consumer with funds to finance the property;
creating joint rights of ownership in the property in the consumer and a limited liability co-owner;
having the consumer make at least one payment to repay the funds, whereby full title to the property is transferred to the consumer alone after full repayment of the funds as agreed between the consumer and the limited liability co-owner, the at least one payment including a profit payment to the co-owner and an acquisition payment that increases the consumer'"'"'s ownership portion of the property and simultaneously decreases the co-owner'"'"'s ownership portion of the property.
3 Assignments
0 Petitions
Accused Products
Abstract
A Sharia compliant financing arrangement for home purchases and refinances that does not involve the payment of interest is disclosed. The financing arrangement is a declining balance Co-Ownership financing arrangement in which a limited liability affiliate of the party financing the purchase, called a co-owner, and the party borrowing the funds for the purchase, the consumer, co-own a residence through a tenancy-in-common. The consumer makes monthly payments to repay the amount funded through which the consumer increases his or her real property or Co-Ownership interest in the residence, while correspondingly decreasing the interest held by the co-owner. Gradually, by making the monthly payments, the consumer acquires the full ownership interest in the residence. The monthly payment has two parts, a profit payment and an acquisition payment. The acquisition portion of the payment is applied to the consumer'"'"'s ownership interest, thereby increasing his ownership interest in the property and decreasing the co-owner'"'"'s interest in the property. The co-owner'"'"'s rights interest in the financing arrangement are transferable to a secondary market investor.
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Citations
74 Claims
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1. A method for a consumer to finance a property without making interest payments, the method comprising the steps of:
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providing the consumer with funds to finance the property;
creating joint rights of ownership in the property in the consumer and a limited liability co-owner;
having the consumer make at least one payment to repay the funds, whereby full title to the property is transferred to the consumer alone after full repayment of the funds as agreed between the consumer and the limited liability co-owner, the at least one payment including a profit payment to the co-owner and an acquisition payment that increases the consumer'"'"'s ownership portion of the property and simultaneously decreases the co-owner'"'"'s ownership portion of the property. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25)
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26. A method of a first party financing a property comprising the steps of:
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obtaining a funding amount to finance the property through a second party that is a limited liability entity;
creating joint property rights in the property in the first and second parties;
making a plurality of payments from the first party to the second party to repay the funding amount, each payment including a profit payment to the second party and an acquisition payment that increases the first party'"'"'s ownership portion of the property and decreases the second party'"'"'s ownership portion of the property by an amount specified in an amortization schedule, whereby full title to the property is transferred to the first party by the second party after full repayment of the funding amount. - View Dependent Claims (27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40)
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41. A system for financing a property comprising:
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means for a first party to obtain funds to finance the property;
means for creating property rights in the property jointly in the first party and a second limited liability party;
means for making a plurality of payments by the first party to repay the funds, each payment including a profit payment and an acquisition payment that increases the first party'"'"'s ownership portion of the property and decreases the second party'"'"'s ownership portion of the property by an amount specified in an amortization schedule, whereby full title to the property is transferred to the first party by the second party upon full repayment of the funds by the first party. - View Dependent Claims (42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53)
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54. A system for financing a property comprising:
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a first computer for initiating an application by a consumer to obtain funds to finance the property;
a second computer for deciding whether to provide the consumer with the funds to finance the property, the first and second computers being in communication with one another;
a document for creating property rights jointly in the consumer and a limited liability co-owner as tenants-in-common;
a third computer for tracking a plurality of payments by the consumer to repay the funds, each payment including a profit payment to the co-owner and an acquisition payment that increases the consumer'"'"'s ownership portion of the property and decreases the co-owner'"'"'s ownership portion of the property, whereby full title to the property is transferred to the consumer by the co-owner upon full repayment of the funds; and
a Co-Ownership agreement between the consumer and co-owner requiring the property to be jointly held by the consumer and co-owner as tenants-in-common and each of the payments made by the consumer to the co-owner to include the profit payment and the acquisition payment. - View Dependent Claims (55, 56, 57, 58, 59, 60, 61, 62, 63)
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64. A method for a consumer to finance a property, the method comprising the steps of:
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providing the consumer with funds to finance the property;
creating joint rights of ownership in the property in the consumer and a co-owner that is a legal entity with limited liability;
making a plurality of payments by the consumer to repay the funds, whereby full title to the property is transferred to the consumer alone after full repayment of the funds by the consumer, each payment by the consumer including a profit payment and an acquisition payment that increases the consumer'"'"'s right of ownership interest in the property and simultaneously decreases the co-owner'"'"'s right of ownership interest in the property; and
transferring the co-owner'"'"'s rights in the financing by the consumer to an investor. - View Dependent Claims (65, 66, 67, 68, 69)
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70. A method for a consumer to finance a property, the method comprising the steps of:
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providing the consumer with funds to finance the property;
creating joint rights of ownership in the property in the consumer and a co-owner that is a legal entity with limited liability; and
making a plurality of payments by the consumer to repay the funds, whereby full title to the property is transferred to the consumer alone after full repayment of the funds by the consumer, each payment by the consumer including an acquisition payment that increases the consumer'"'"'s right of ownership interest in the property and simultaneously decreases the co-owner'"'"'s right of ownership interest in the property. - View Dependent Claims (71, 72, 73, 74)
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Specification