All Topics / Creative Investing / Lease/Options

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  • Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    April 26, 2011 - 11:25 pm

    At the moment Rent To Owns (Lease/Options) aren't regulated by Australia's National Consumer Credit Protection (NCCP) Act 2009.

    However, if you are a Vendor Financier, it's worth noting that in both Qld and Vic a tribunal has looked at the "intent' behind a residential Lease/Option and decided the "intent" is to purchase a property. After coming to this decision, they declared the Lease/Option to be an Instalment Contract, i.e. a credit contract and thereby regulated by the NCCP and it's associated Responsible Lending requirements.

    It's only happened twice so far that I know of but it will be an interesting space to watch.

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 28, 2011 - 8:07 am

    Cheeky.

    Paul, have you got a reference to that matter?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    May 3, 2011 - 2:38 am

    Hi Terry

    I don't have a reference but I could put you onto the vendor financiers that it happened to.  When it happened, they took a "deep breath" and settled out of court.  They told me one of their considerations for doing this was to delay such a Tribunal decision from being tested in a higher court.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 3, 2011 - 3:09 am

    Thanks Paul.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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