How would a lender disclose rent paid in a transaction either by the borrower or the seller. I see the Regulations mention such situations in the "Adjustments" parts of Section K & N, but it doesn't quite match with the situation I am trying to deal with. If you have a buyer being paid $200 by the seller at loan closing to stay in the property for 5 more days or whatever, how is that treated on the CD? Conversely, if the buyer has been paying the seller rent because they already lived in the property for a few months, is that amount on the CD, or is it considered not part of the transaction?

What the buyer has paid for rent prior to closing is irrelevant. The seller paying rent for a period of time after closing is handled here:

Paragraph 38(j)(1)(v).

1. Contractual adjustments. Section 1026.38(j)(1)(v) requires disclosure of amounts owed by the consumer that are not otherwise disclosed pursuant to § 1026.38(j). For example, the following items must be disclosed under § 1026.38(j), to the extent applicable:

ii. Any rent that the consumer will collect after the real estate closing for a period of time prior to the real estate closing;

Yes, that is the part I was referring to. But, the problem I have with that statement is it says rent collected after the real estate closing for a period of time prior to the real estate closing. In this case, the rent is being collected AT real estate closing for a period of time AFTER real estate closing, not prior. Also, since funds are being collected from the seller, it would seem that an entry would be needed for the Seller's Transaction side.

It is just worded very poorly. That is what it means.

Any rent that the consumer will collect (for a period of time) after the real estate closing (collected at) the real estate closing

Okay, thank you for the clarification. So, that would be under the heading "Adjustments?" Is there a corresponding entry on the Seller's Side to capture the funds from the Seller? Where would that go? In Section M under "Adjustments for Items Paid by Seller in Advance?"