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#1993357 - 02/04/15 04:54 PM LLC to pay off Land Contract
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,115
The Great White North
We have a situation where an LLC runs their business out of their home. The title is in the LLC. The loan will be made out to the LLC. The loan purpose is to pay out the current land contract. Would RESPA/Reg Z apply? The mixed use is throwing me. The proceeds to payoff the land contract would be for both business and personal use right?
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Lending Compliance
#1993524 - 02/04/15 09:25 PM Re: LLC to pay off Land Contract Bec
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,115
The Great White North
bump
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#1993735 - 02/05/15 03:53 PM Re: LLC to pay off Land Contract Bec
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
Loans to non-natural persons are exempt from Reg. Z.

Business purpose loans are exempt from RESPA. You will need to determine if the primary purpose of the loan is business or consumer. If business it's exempt from RESPA, if consumer it would not be exempt.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1993955 - 02/05/15 09:02 PM Re: LLC to pay off Land Contract Bec
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,115
The Great White North
Thank you Dan, I appreciate you answering my query smile
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