How does repayment work if the borrower sells, refinances, or pays off the first mortgage?

The borrower is required to repay both the original SAM loan amount and the borrower’s share of appreciation. Appreciation is calculated by subtracting the original purchase price from the market value at the time repayment is triggered, and the borrower repays the same percentage of that appreciation as the original SAM percentage (for example, 20% or 25%). The total repayment consists of: (1) the original SAM loan amount, plus (2) the borrower’s proportional share of appreciation.