SAFE Act, Frank/Dodd violation if you give home away?

mobile home university
1

I have a '79 home in my park that I am renovating.

I am thinking about renting it out at market price.

What if I say to the tenant and put it in the contract: if you rent this home from me, and you always pay on time, then I will give the home to you for free after X years.

Does this violate any regulation? Is it a good idea?

2

Yes, this is a disguised mortgage and a violation of Dodd-Frank. Look at it another way – what’s the difference between this and an installment sale (which is also a disguised mortgage)?

3

@Brandon, thanks Brandon.

4

I now understand why my dad did everything on handshakes with vague 1 page contracts that only he knew what he wrote.

1 Like