Solicitors with knowledge of rent/buy options, sandwich leases etc

Viewing 7 posts - 1 through 7 (of 7 total)

danthewanderer
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@danthewanderer
Join Date: 2005
Post Count: 4
March 16, 2011 - 12:57 pm
Can anyone recommend solicitors with experience in rent/buy options, sandwich leases etc in SE Qld, preferably through personal experience? Have opportunity to do rent/buy option on a house, plan was to renovate & purchase on completion. But was curious if stamp duty payable to onsell to another buyer. On other threads have read comments re 'higher price' clauses & 'blind options'….so need to get legal advice relevant to Qld. Cheers
Paul Dobson
Participant
@pauldobson
Join Date: 2003
Post Count: 1,196
March 16, 2011 - 9:17 pm
Hi Dan
We use Tom Forster for our Vendor Finance business in QLD. His contact details are:
Tom Forster
Litigation Law Queensland
PO Box 777 Main Beach Qld 4217
Phone: 0428 777 007
Fax: 5591 5571
Email: [email protected]
If you exercise your option on the property, i.e. you buy the property, then you will pay stamp duty. If you then sell to another buyer, the new buyer will pay stamp duty.
However, if you use the "Higher Price" or "Blind Option" as the original option which you control the property with (along with a corresponding lease) then, when you assign the option, the new purchaser won't be able to see your original option price. And double stamp duty isn't payable.
We often use the "Higher Price/Blind Option" in Qld.

Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone Me
An alternative way to finance your home.
danthewanderer
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@danthewanderer
Join Date: 2005
Post Count: 4
March 18, 2011 - 7:12 pm
Thanks for feedback, appreciated
Dan
OB 1 CANIBE
Member
@ob-1-canibe
Join Date: 2011
Post Count: 12
March 24, 2011 - 11:59 am
Hi Paul & Karen,
Could you please explain the higher price / blind option mechanism.
X wants to buy a house but cant afford it. Y comes along and offers to buy the house, let X rent it, and pay extra above the rent to buy equity deposit until it can be refinanced through the banks.
So X gets a lease, and an option ?
at a higher price?
blind option ?
help
Andy
Paul Dobson
Participant
@pauldobson
Join Date: 2003
Post Count: 1,196
March 25, 2011 - 5:09 am
Hi Andy
If Y buys the house she/he would give/sell X a Lease and an Option. Hence the term &;quot;Lease/Option&;quot;. The Lease is just a standard Residential Tennancy Agreement (lease). It's purpose is to give X the right to occupy the premises. The Option gives X the right (but not the obligation) to purchase for a fixed price, within a fixed time period (term).
Y would only need a Higher Price (Blind) Option if she/he was carrying out a back to back Lease/Option (sometimes called a Sandwich Lease/Option). As you mentioned Y is buying the property, he's not carrying out a Sandwich, therefore a Higher Price (Blind) Option woudn't be needed.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone Me
An alternative way to finance your home.
razzhm
Member
@razzhm
Join Date: 2011
Post Count: 4
September 22, 2011 - 11:26 am
Hi guys
If you join the vendor finance association there is heaps f infrmation on this stuff as there are multiple ways of structuring the transactions to benefite vendors and purchasers. They can also recommend solicitors who are familiar and comfortable with the lease/option paperwork. It does work exceptionally well if structred correctly. Good luck!
Paul Dobson
Participant
@pauldobson
Join Date: 2003
Post Count: 1,196
September 23, 2011 - 1:13 am
The Vendor Finance Association of Australia can be found at:
http://www.vendorfinance.asn.au/
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone Me
An alternative way to finance your home.