Dodd Frank and Owner Financing

[Pete Harper]

I am attempting to purchase a property in Massachusetts that has commercial space on the first floor and also has residential units on the 2nd and 3rd floor (2 units). I am planning to occupy one of the units and will lease the other unit to a 3rd party.

I've been attempting to negotiate the terms of owner financing with the current owner and recently we've hit an issue because of concerns regarding compliance with Dodd Frank. In a nutshell, will the fact that I plan to occupy the property as my principal residence force the owner to comply with Dodd Frank? Caveat: my residential unit will comprise about 1,500 square feet of an approximately 7,000 s.f. property?

Any help/guidance would be appreciated.

Note that I have spent countless hours researching the issue and the statute and its impact have left me befuddled!

Thanks.

[Rob K.]

Welcome to BIG GOVERNMENT. Every state has different laws concerning the Safe Act. You will need to research the laws of your state and navigate through the many gray areas.

The fact that the property will be owner occupied could throw a wrench in your deal vs. a non owner-occupied property.