Here's what I had on Question #3: http://www.deangraziosi.com/real-estate-forums/contracts-and-offers/151725/how-does-dodd-frank-act-affect-investors Special Notes on Lease Options: 1) A lease option between a seller and an investor (non-owner occupant) is not restricted under Dodd/Frank; 2) Technically, since a Lease Option between an owner and a tenant/buyer does not convey title, it is not a sale, which means it does not fall under the regulations of Dodd/Frank; however, if either the IRS or a court determines that it is an installment sale to a consumer borrower, it would be deemed a loan. To avoid such designation, and avoid lawsuits: a. Use Separate Documents for lease and option, executed on different dates, and with no reference to each other. You can charge option consideration with the option agreement as it is a legal requirement of an option, but do not accept option consideration in installments; b. Keep Term of lease to tenant buyer under 3 years; c. Offer No Purchase Credit/Rent Credit on monthly or periodic payments d. Major repairs and maintenance are the responsibility of the owner—do not assign these to the tenant/buyer; e. Complete some basic lease option underwriting and pre-qualification i. Conduct a Credit Check; ii. Confirm Employment; iii. Confirm Income; iv. Recommended: Request information on all Monthly Loan Payments, Other Loan Payments, Other Mortgage Obligations, and Alimony and Child Support Payments; v. Run a Debt to Income Calculation, including their monthly Lease Payment. 3) Suggested: For any arrangement that could fall within Dodd/Frank legislation, have borrower complete a Uniform Residential Loan Application, such as the FNMA 1003, (Reference:https://www.fanniemae.com/content/guide_form/1003rev.pdf ) or modify such a form for your own usage—then use that information to research borrower’s repayment capability per the instructions above. As for question 4, I remember reading (somewhere) that an investor didn't want the seller to get any of his TB option fee, so someone wrote back to charge a "fee to release the option" and that way the seller couldn't get any of the option fee or consideration. So I just answered #4 myself (use one or the other). Do you have a way of keeping the seller from getting any percentage of the option fee you charge the TB? or am I just being too greedy? ;-) Thanks, Gary