Lease Option Agreements

It is just a lease with an option to purchase and a contract of sale. Most property lawyers could do this, but try Lewis O’Brien who is a Vic lawyer experienced in vendor finance type deals.

Hi Steve

Terry’s recommendation is spot on, i.e. Lewis O’Brien is, in my opinion, the ‘go to’ vendor finance solicitor in Vic.

However be very careful of Victorian state legislation regarding Lease/Options and Stamp Duty. Unlike most other States of Australia, Stamp Duty in Victoria is not normally payable until Title transfer occurs. In most other States Stamp duty is payable within a specified number of days after exchange of contracts.

A couple of years ago Victoria alone introduced legislation that makes Stamp Duty immediately payable upon the establishment of a Lease AND an Option on a property.

This has resulted in Lease/Options being generally dropped by Vic based vendor financiers and vendor finance (VF) Instalment Contracts becoming the preferred VF technique for Vic properties. This is because, with and Instalment Contract on a Vic property, Stamp Duty is not payable until the VF buyer sells the property or refinances it and becomes the Title holder.

Another thing to remember is that VF sales, unlike traditional sales, need ongoing administration after the buyers move in. I’d suggest you Google for a ‘vendor finance management’ company.

Cheers, Paul