Forums / Getting Technical / Legal & Accounting / Vendor finance seller questions

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  • Profile photo of amazon196969amazon196969
    Participant
    @amazon196969
    Join Date: 2004
    Post Count: 15

    I am the owner of a duplex pair on one title in Western Australia for sale with the offer of gifted deposit, VF or Rent 2 Buy purchase types. I have had a bit of interest in it since advertising it, so now I need to find answers to a few questions before I proceed.

    How do I come to a selling and or deposit figure as a VF or R2B type sale, I am asking $280,000 for a traditional bank type sale, is there a certain percentage used to come up with either figure? I am aware there is likely to be extra legal costs I need to consider with the asking price, but are there any other costs I need to consider?
    Would I be better off raising the price of the property or charging a higher interest rate (for tax purposes)??
    I am aware the purchaser is responsible for the land and water rates etc, just wondering how this works ie are they billed directly or other, as I understand these bills usually go the the title holder?

    If part or whole property is rented out by the purchaser, where do I stand legally should the VF or rent to buy type sale fail? where do I stand with the tenants?
    I also question the insurance, as it’s all well and good that there is a clause in the contract that buyer proves they have acquired a policy to cover the property, however this doesn’t stop them from canceling the policy at any time and I would be none the wiser. I wonder if there is a way around this without having to get my own insurance on the property, also should the buyer rent out either side or both I wouldn’t be able to get landlord insurance which covers malicious damage from tenants etc, as they are the landlord as per rental contract.
    Thanks in advance.

    • This topic was modified 2 years, 9 months ago by Profile photo of amazon196969 amazon196969.
    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    If I were you, I would get an expert advice to make sure you’re not making a mistake. I’m sure you’ll be able to find plenty of VF legal/other services online 👍😎

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

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