Can anyone give me a definition of "real property" as used in Reg Z? Would a boat slip be considered "real property"?

Janec, I'm not sure Reg Z defines real property. In order to answer your question, you would probably need to know on what body of water the slip sits? Public lake? Private pond? If public property, then slip might be personal property, and if private pond, then it probably would be a part/and affixed to the private real property. I would make sure it isn't just leased by customer. Is your concern for a boat that is being used as a primary dwelling?

I'm not sure I've helped. Perhaps someone else will comment...

Seeker: We're on a large lake where boat slips can be purchased. Those that accommodate large boats are quite expensive. We finance them thru our installment loan dept. and we take a mortgage on the slip. We've been doing them for a long time and we are now being told by a consultant that the appraisal fee has to be a finance charge. We've been under the assumption that the fee can be excluded as a FC as this is a loan secured by real property. They said that doesn't apply to installment loans.

The type of credit has nothing to do with your determination about real property--it's a matter of state law. The term "mortgage" usually means dirt (mud, in this case), but there are also "chattel mortgages" and "ship mortgages." The easiest way to resolve this is to request an opinion from your counsel.

The people pay real estate taxes on the boat slips. Some of the deeds include a common ownership in the land that the docks are attached to.

Well it sounds as if they are considered real property...but again as Richard said it will be a state law issue and if you are uncertain it would be wise to take his advice and talk to your counsel to insure that you file the appropriate security documents.

Dan is correct. There is more at stake that just determining whether the loans are covered under Regulation Z.

Knowing this much, I'm satisfied that you have been acting in good faith. More information might change your understanding about the exact nature of this type of property, but you didn't have that information at the time you made the decision about the charges.