Hi Vanessa

Overton Insurance Brokers have a special Building Insurance Policy they have put together for all Vendor Finance transactions, eg, wraps and lease/options.  The policy is underwritten by Australian Unity and we have bee using it for a few years now.

I'd suggest you have a chat with Stella Tolios at Overton, on 03 9803 9222.  Good luck.

Cheers,  Paul

Hi Bec

We use Tony Cordato for our real estate property purchasers, using call options.  We don't specifically use call options for real estate developments purposes but I'm sure Tony will be able to help.  You can contact him at:

Cordato Partners
Business,Property & Tourism Lawyers

Level 5, 49 York Street Sydney NSW 2000
Ph: (02) 8297 5600
fax: (02) 9290 2784
Email: [email protected]
Website: http://www.businesslawyer.com.au

Cheers,  Paul

Hi Mark

You could try:
1. Heritage Park Property Management – Attn. Chad
Phone / Fax 0263 443 650
Mobile 0411 890 268
[email protected]

2. Joseph Scarcella
0408 423 885
http://www.primerealestateagents.com.au

Good luck

Cheers, Paul

Hi Jase and Flic

It depends how the Option To Purchase agreement was written.  Some Options are written with an Assigment clause in them.  This allows the original purchaser of the Option to Assign the Option to another party. 

If the Assignment clause (or sometimes a Nomination clause) is there, you could Assign the Option for a price.  How you structure the price you sell the Option for, is your business and usually doesn't require the approval of the initial grantor of the Option.  Once again, you'd have to read the wording of the Option closely.

I hope this helps.

Cheers,  Paul   

Hi Steve

It looks good.  But of course we miss your smiling face

Cheers,  Paul

Hi Joe

Just as an aside, all our Instalment Sales Contracts don't allow our Wrapees to rent the property.  The clause goes something like "the purchaser must remain in possession of the property".

One of our reason for not allowing our wrapees to rent the proerty isthat we feel there is too much "distance" between us and the people living in the property.

At this point, if I was you, I'd back right away from this "who pays what" situation.  In your Instalement Sales Contract I'd imagine it says that your wrapees are responsible for the water rates.  I would simply let the wrapees know that this has nothing to do with me and that they need to sort out a resolution to this challenge, i.e. from my point of view, it's not my problem.  Good luck.

Cheers,  Paul

Thanks Richard.

Hi Emil

Karen and I may be able to look at doing a JV with you.  I suggest you ask Richard what you can borrow and then send me an email or PM. Good luck.

Cheers,  Paul

Hi Arthur

i) Tony Cordato – Cordato Partners, York St, Sydney

ii) We always keep the Rates and Insurance in our name and have the bills sent to us.  We don't want people chasing us for bills that haven't been paid by our wrapees.  Of course, the wrapees pay these bills.

iii) We usually use, "no more than 35% of a client's gross uncommitted income". 

iv) All the Instalment Sales Contracts I've ever seen have been written to ensure that your wrapees have to pay your early repayment penalties.

v) Stamp Duty.  In NSW the wrapees have to pay stamp duty on the purchase within 90 days of exchange of contracts.  If not paid within that time frame, they are charged penalty interest.  CGT – is only payable on "settlement/completion" of the Instalment Sales Contract, i.e. when your wrapees finally complete the sale by refinancing you out or possibly selling the property.

vi) Most mortgage documents say things like, you have to tell the bank if you plan to sell the property or if you plan to rent the property.  Most people don't.  However, you could always refinance the property into one of the "fully disclosed products" on the market, prior to wrapping the property.

Possibly a less stressful way to do your first vendor finance transaction (wrap) is to ask an experienced Vendor Financier for some help.  There are a lot of Vendor Financiers in your area that would be happy to walk you through the whole process, training you as you go, for a percentage of the profits.

Good luck.

Cheers,  Paul

Hi lobo

Would you mind letting us know why you're planning to sell?

With regard to private sales and the possibility of people not talking to you because it is a private sale; we put the signs up, in Sydney, at 1pm on a Tuesday and had the proerty sold at 9am on Saturday!!

If you do decide to sell, don't be scared of the private sale process.  There are plenty of web site to help you through it.  We found it to be a very easy process.

Good luck.

Cheers,  Paul

Hi Devo

Congratulations!  That's great news   We definitely want to hear about each of the next dozen or so

Cheers,  Paul