Is the REX Agreement a scam?

Question

I mean, they say they'll pay part of your mortgage if you agree to give them a percentage of the money you'll get by selling the house later on. But what if you decide to never sell the house??

Answer 1

It's the earlier of sale date, 30-50 years, death, moving out, etc.  (They have clauses about your having to keep the title free and clear of all liens or the agreement ends.)

The risks to REX are high, so the discount rate used to calculate a fair offer will be extreme.  You won't get much cash out of such a deal.  The calculator at their website is ridiculous.  (The fine print says that if the deal doesn't last at least 5 years, you have to pay money back.)

The site is also naive in it's statement that the deal isn't taxable.  It's not a loan, they are a purchasing of a part of your home.  That's a sale and it's reportable.