Owner-Occupied

In depth

Owner-occupied status applies when the buyer lives in the property as their primary residence. This triggers Dodd-Frank, SAFE Act, TILA, RESPA, and other consumer protections, and qualifies the buyer for homestead exemption and Section 121 capital gains exclusion. Misconception: owner-occupied is not the same as second home; second homes are not the buyer's primary residence and face different lending rules. Practically, in seller-financed deals, the buyer's owner-occupant status determines whether Dodd-Frank applies. Investor-to-investor sales bypass most consumer regulation. Sellers should obtain written occupancy declarations to establish status. Misrepresentation of owner-occupancy can void loan terms and trigger fraud claims.