House Swap

DEFINITION of 'House Swap'

A practice in which the owners of a home allow the use of that property in exchange for the use of another party's home. A house swap does not involve the sale of a home; rather, it allows a homeowner to "borrow" someone else's home. It can be some on a temporary or semi-permanent basis. House swaps typically involve an exchange in property use for the purpose of vacation. They are also options for homeowners who need to relocate due to a change in job, but are unable to sell their home due to a depressed housing market.

BREAKING DOWN 'House Swap'

Homeowners who do not want to give up a piece of property but wish to stay in another area may enter into a house swap agreement. For example, the owner of a condo in Miami may enter into a house swap agreement with the owner of a home in Denver. The Miami homeowner may like to ski in the winter, while the Denver homeowner may like to visit the beach in the winter.




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RELATED FAQS
  1. What would motivate an entity to enter into a swap agreement?

    Learn why parties enter into swap agreements to hedge their risks, and understand how the different legs of a swap agreement ... Read Answer >>
  2. When was the first swap agreement and why were swaps created?

    Learn about the history of swap agreements, the first swap agreement between IBM and the World Bank, and how swaps have evolved ... Read Answer >>
  3. How are swap agreements financed?

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