Dodd-Frank Regulates Seller Financing of Homes

Dodd-Frank Regulates Seller Financing of Homes

Are you selling a residence or mobile home with a land contract or other secured seller financing? In addition to dealing with normal land contract terms, you may need to comply with the new federal regulations under the Dodd-Frank Act. Dodd-Frank was in response to lending practices in the residential mortgage market. It has been applied to many sellers as well as lenders.

The statute and regulations apply only to residential property. But this includes traditional houses as well as mobile homes and manufactured homes.

Are you regulated by the statute and regulations? The answer is yes unless you fit within one of two surprisingly narrow exemptions.

Will you sell only one residential property with seller financing during a 12 month period? You might be exempt if you did not build the property, meet certain conditions and do not own it through a company (i.e., not owned through a partnership, corporation or LLC).

Will you sell not more than 1-3 residential properties per year with seller financing during a 12 month period? You will be exempt if you did not build the residence, meet certain conditions and there is no balloon payment.

Even If you are exempt, you need to address the certain requirements under the statute and regulations. You may need to investigate whether the buyer can afford their payment obligations (including any balloon payment) and comply with certain other requirements.

What if you don’t comply? Under Dodd-Frank, the buyer can cancel the transaction and has the option to get his or her money back.

These increased federal regulations mean it is more important than ever to get advice from counsel knowledgeable about seller financing.


Cunningham Dalman, PC publishes this web site and its component parts to inform users about our firm, our attorneys and general new developments in the law. The web site and blogs are not intended as legal advice on any matter. There are many factors that may affect your situation. You should not act or refrain from acting because of information found here without first seeking appropriate legal or other professional advice from someone who is familiar with your particular circumstances.

In the operation of this web site and our blogs, we do not intend to create an attorney-client relationship with you and no such relationship shall be created by your use of this web site. Such a relationship can only be established to the extent an attorney at Cunningham Dalman, PC expressly agrees to undertake the relationship. Please do not communicate to us any information you regard as confidential unless and until we have established a formal attorney-client relationship with you. Any information you send to us before we establish an attorney client relationship may not be privileged or confidential. Information you send to us over the Internet may not be secure.

Our Practice Areas
Our Practice Areas

Recent Posts


Cunningham Dalman P.C.
PO Box 1767
321 Settlers Road
Holland, MI 49422-1767

Google Map


Scroll to Top

Tell Us How We Can Help You

Send us a quick message or call us at 616.392.1821!

Seminar Registration

Fill in the form below to reserve your spot today for each person attending. If you have any questions, please call the office at 616.392.1821.

Call Now Button