Do I have to be a licenced finace adviser to offer my house with verder finace.
COI1 seems to let me as long as i advise them. on a COI1 form.
But ASIC web site..
RG 203.35
If you are a COI lender
,
you have a choice about how to proceed. You can
elect to either:
(a)
register with ASIC, apply for a credit licence and be regulated as a
credit licensee; or
(b)
not be licensed under the National Credit Act and instead be regulated
as an unlicensed COI lender, in which case you will be subject to a
modified statutory regime. In the six weeks before becoming an
unlicensed COI lender, you must notify ASIC that this is your intention.
Is that saying i can sell my house with Vender finace and not be licenced but have to avise ASIC and be under the unlicenced regulations??
Hope you can help.
Hi Rusty
The actual provisions of the NCCP Act 2009 in relation to Carried Over Instruments (COI's) relate only to credit contracts setup prior to 1 July 2010.
While the ASIC form for COI's, i.e. COI1, only relates to these pre 1 July 2010 credit contracts, there does seem to be no notification mechanism to inform ASIC that you are providing a credit contract to a consumer, not 'in the course of a business'. Hence one VF specialist lawyer I know recommends sending ASIC a COI1 form in this situation, i.e. were you provide credit to a consumer, not 'in the course of a business'.
My answer to your other question in this sub forum provides more information on this issue. Please remember, I'm not a solicitor, so please get legal advice regarding this question.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul I spoke to Russell S last night after this post and he gave me some good advise and that is that as you said i can if i comply with the act Ill see what sort of offers i get from prospective buyers and go from there. Ill have a read on your web site and get an idea of the work involved and get in tough if it looks like i need your service.
Thanks again.
Hi Paul can you Vendor Finance a property and then rent it out to tenants. Obviously you will be paying a higher interest rate so it will cut into cash flow but i like the low depoist idea?
Cheers Tony
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Hi Tony
As a general comment, if you're buying from a vendor financier you're probably buying at a premium price. Therefore, if you were planning to rent out this property, your negative cash flow may be higher than if you organised a vendor finance (VF) purchase directly from a seller.
If you 'buy', i.e. take control of a property with a Lease/Option (Rent To Buy) you will need to ensure that the Lease gives you the right to sub-let. Most of the Instalment Contracts I've seen require the buyer to get the permission of the seller to rent the property. A lot of vendor financiers, selling with Instalment Contracts, only sell to owner occupiers, so make sure you have approval to rent before you authorise the paperwork.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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