The UK’s Financial Services Authority (FSA) has published the new rules and guidelines for what is called Sale And Rent Back (SARB).

Most any serious real estate investor in the US avoids buying from an owner occupant and then renting the property back to the same party.

For a few years the combination of SARB deals with same day refinancing produced a rapid rise in investors or firms offering SARB package deals to people under financial stress. All the cowboys piled in. Some sellers found that their tenancy was not as they had expected.

FSA press announcement
FSA advice
FSA consultation paper and request for feedback on the permanent regulations