Land and rules

i need make sure that something isnt against linden labs Rules....
ok if i loaned a couple friends some linds and they placed their land in my name until paymentis is repayed with interest or lose their land(like a loan)..is that against any linden rules?

None that I am aware of.

I'm a little confused about what you want to do. If you are wanting to hold their land as colateral for a "loan" I guess you can do that with a group and they make you an owner. But that is only if the land is mainland. If it's private estate I doubt you could do that......you would have to check with the estate owner (don't hold your breath for that owner going along with it though).

One thing to keep in mind. Linden Lab will not get involved in any property disputes should things go awry. The land owner will have to create the group, and they would have to make you an owner......one or both of your friends will probably also be owners. Owners can sell the land without the other owners being involved in the sale. It gets complicated......you could wind up with nothing. The other side of that is that you could sell the land......and be a real asshat. Or they could default on their premium membership (or downgrade or cancel) and abandon the land.....you're stuck with nothing again. Unless you are premium you can not even buy the land either.

A way that might work involves a lot of trust on both party's part. If you are premium then they could "sell" the land to you for 0 (zero) lindens and you take over any teir for the land. Then when they pay you back you sell the land back to them at 0 lindens.

I would never do what you are wanting to do.......too much of a chance for someone to lose (on both sides of the deal). It's also getting pretty close to what caused the ban on banking in SL a couple years ago. Something along the lines of "loan sharking".

Why not just loan the money to them and trust they will pay you back? It would, in my opinion, be less risky. But, since you appear to need some colateral for your loan, I don't think you trust them well enough for that.

Are you sure you want to do this "loan"?

the banking ban only involves the use of an atm, what you are aiming to do is buy thier land and sell it back to them later for a profit, something that is sometimes called an islamic loan.
There is nothing preventing you from doing this, however, if it is mainland you have to be premium or put it in a group and you end up paying the tier, if it is estate they can keep paying the tier and no premium is needed, however not all estates alow transfer of land and if the loaners stop paying the tier the estate owner will most likely take the land back unless you contact the estate owner first.

Erm... your friends just sold you some land.

I hope it was a good deal.

No one can "place their land in your name." You have to buy it, or be the sole owner and sole recipient of accounting funds of the group that owns the land.

If you want to secure their land as collateral for a loan, generally that is not against the TOS. As has been said, the banking ban is one that prohibits the use of automated/scripted objects to collect funds, with the promise of returning interest. And it matters what kind of land you are talking about, because owning land comes at a cost to you - you pay the tier, either to Linden Lab or the estate owner. You had better make sure that what you own actually has some value, and that you can get a fair price in the event that you have to sell the land because of a default on the loan.

And the associated tier payments until they buy it back... I hope it's a really good interest rate.

That is assuming that your friends don't just accept the L$ and skip off into the wild blue without selling you the land.

My recommendation is if you have the tier, just have them set the land for sell to you for the amount of the loan. Then neither of you get screwed.

Edit: And when they go to pay you back, then you set the land for sell to them, for the amount of the loan.

The only way to place their land in your name is for you to buy it. The moment you buy, you are liable for tier on it - if it takes you to a higher tier level. It won't take long for the amount you paid LL in tier, together with the amount you loaned them, adds up to make the land expensive when they come to buy it back and you may end up with land you don't want, that's not easy to sell, and minus two friends.

That's mainland, of course.

just wanted to make sure i wasnt going to be breaking any rules.thanks everyone for the info.this is what we have decided to do..i buy their land for loan amount and i set land to sell back to only them for repayment amount.in the mean time they join my group and i give them create rights so they can still have use of the land.
the land is worth more than the loan so i know they will rebuy their land..if not i make a profit either way.

You still may not make a profit. Have you considered the cost of keeping that land while you're waiting for them to pay you back?

Just as an example:

You buy the land for L$5,000 because that's what they want to borrow. You agree to charge 10% annual interest. So you mark the land for sale to them for L$5,500, expecting that in one year they will buy it. In the meantime, you are paying to keep this land. Let's say that this is a mainland property, and because of its size you're paying LL $10 USD a month to keep this property. In one year you will have paid US $120 on this property, and they only have to pay you back L$5500. L$500 (the interest accrued on this loan) costs far less than $120. You lose, and you lose in a very major way.

I think it's more likely that THEY will profit. The land market is WAY down...land that was worth $10L per square meter a few months ago won't sell today for $4L/m2. And remember, as long as you own the land, you have to pay the tier on it.

Not only that, but they get to live there FREE until you get so tired of waiting to get repaid that you kick them off the land and out of your group.

My advice: Don't loan anybody $L and expect repayment. It's like giving a stranger on the street money and hoping you'll find him again someday and get paid back.

That's actually good rl advice too; I never loan anyone rl money that I can't, in the long run, do without. If I get it back, it's a bonus, if I don't, I'm not going down, either.

I agree. I was raised to not loan money unless you don't expect to be paid back. This could turn out very wrong especially considering if the land is worth more than the loan. They have nothing to lose and in the end, yes, you could get screwed.

Basically you bought their land, but there is no real way to make them buy it back, if they choose to renege on the 'loan.'

It is not really a loan with collateral, it's a land deal, with a fuzzy future.

(And yeah, as Lindal pointed out - if they are living on the land meantime, then they basically got your money AND the land.)