Australia's leading provider of affordable DIY legal kits
Call our Customer Care Specialists on 1300 728 200
   

Legal Forum

Welcome to the FREE AussieLegal Forum

This FREE legal forum is supported by participating lawfirms in your local area.
The information contained in this public forum, and any comments made by the administrators, it's appointed mediators, or members of the public are of a general nature and may not be regarded as financial or legal advice in any way. We recommend that you seek formal advice from a practicing solicitor or licensed financial advisor regarding your particular situation. By registering to use this forum you meet the above criteria and agree to abide by all of the above rules and policies.

To be sure we provide you with the most relevant information to your state, please let us know which state you your legal matter resides in:

ACT  NSW  NT  QLD  SA  TAS  VIC  WA  

AussieLegal recommends this law firm:

  FAQ FAQ  Forum Search   Register Register  Login Login

Vendor finance seller questions

 Post Reply Post Reply
Author
  Topic Search Topic Search  Topic Options Topic Options
amazon196969 View Drop Down
Newbie
Newbie


Joined: 08/March/2017
Location: Australia
Posts: 1
  Quote amazon196969 Quote  Post ReplyReply Direct Link To This Post Topic: Vendor finance seller questions
    Posted: 08/March/2017 at 00:45
I am the owner of a duplex pair on one title in Western Australia for sale with the offer of gifted deposit, VF or Rent 2 Buy purchase types. I have had a bit of interest in it since advertising it, so now I need to find answers to a few questions before I proceed.

How do I come to a selling and or deposit figure as a VF or R2B type sale, I am asking $280,000 for a traditional bank type sale, is there a certain percentage used to come up with either figure? I am aware there is likely to be extra legal costs I need to consider with the asking price, but are there any other costs I need to consider?
Would I be better off raising the price of the property or charging a higher interest rate (for tax purposes)??
I am aware the purchaser is responsible for the land and water rates etc, just wondering how this works ie are they billed directly or other, as I understand these bills usually go the the title holder?

If part or whole property is rented out by the purchaser, where do I stand legally should the VF or rent to buy type sale fail? where do I stand with the tenants?
I also question the insurance, as it's all well and good that there is a clause in the contract that buyer proves they have acquired a policy to cover the property, however this doesn't stop them from canceling the policy at any time and I would be none the wiser. I wonder if there is a way around this without having to get my own insurance on the property and should the buyer rent out either side or both I wouldn’t be able to get landlord insurance which covers malicious damage from tenants etc, as they are the landlord as per rental contract.

webbrowan View Drop Down
Newbie
Newbie
Avatar

Joined: 12/May/2016
Location: Sydney
Posts: 19
  Quote webbrowan Quote  Post ReplyReply Direct Link To This Post Posted: 27/March/2017 at 16:58
I should think that you would want to get an agent to help you manage the sale and even the property management after you've found a willing buyer. Chances are that they should be able to help absorb the legal aspect of things into their job scope too so that you have less to worry about. As long as you get a reputable and licensed agent in your area, I don't see why you wouldn't be able to benefit from passing the responsibility off to a nice realtor!
Best Regards
Rowan Webb

citizen-joe View Drop Down
Senior Member
Senior Member


Joined: 09/October/2005
Location: Australia
Posts: 206
  Quote citizen-joe Quote  Post ReplyReply Direct Link To This Post Posted: 27/March/2017 at 19:04
If it was me I'd be selling the place to the purchaser with a contract that specifies a mortgage to myself, the conditions for repayments including interest rate and movements of that rate and the requirement for insurance would be included in the mortgage document. I'd have a solicitor draw this up for me. Done properly now will save a fortune in legal fees later on if anything goes wrong.

You could set an initial interest rate, base it on a typical bank rate, perhaps discounted a little to make the loan attractive and have it move with the CPI annually.

You need to pay attention to the default conditions and what happens to allow you to reclaim the property should the purchaser default on payments. Care here will stop you having to go back to court numerous times to reclaim the property.

 Post Reply Post Reply

Forum Jump Forum Permissions View Drop Down

Want to save money?

Check out our list of do-it-yourself legal kits.

Need formal advice?

Let us help you find a lawyer who specializes in your particular area of law.

Need further information?

Visit our legal forum where you can ask questions and search for similar topics.