What determines a rental property to be considered owner-occupied under Reg Z?

The correct choice articulates the requirement that for a rental property to be considered owner-occupied under Regulation Z, the owner must live in one unit for at least 14 days within the coming year. This stipulation highlights the flexibility afforded to property owners regarding their rental activities while still qualifying for certain benefits associated with owner-occupied properties.

Regulation Z, which is part of the Truth in Lending Act, aims to promote transparency and prevent misleading practices in lending. By designating a property as owner-occupied when the owner resides there for a specified minimum period, it allows for a clearer understanding of the nature of the property, which can affect loan terms, disclosures, and eligibility for certain types of financing.

The other choices do not accurately reflect the definitions or requirements set forth by Regulation Z. For instance, requiring the owner to occupy the property indefinitely or full-time dismisses the flexibility allowed for a minimally qualifying dwelling period. Similarly, renting out all units does not align with the definition of owner occupancy, as it fails to recognize the owner's physical presence in one of the units.