I just wish one person had the answer about where the lender is expecting the Gift of Equity to be written. A gift of equity is a real estate purchase and sale transaction, usually between relatives.A gift of equity is the sale of a residence to a family member or someone with whom the seller has a close relationship. To complete a gift of equity, the home's seller must have an official appraisal done. To complete a gift of equity, the home's seller must get an official appraisal. The Estate Lawyer can help with legal questions about gifting equity for a beneficiary to buy a home and final estate distributions. A gift of equity is selling a house below its market value, usually to a relative or close associate. This comprehensive guide delves into the process of buying a house from a family member, covering the legal framework, advantages and disadvantages. The gift represents the amount of equity the seller gives to the relative buying the home.