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In Qld a Licence To Occupy can only be used for a maximum of 28 days. If you want to give possession for a longer period, as a result of a delayed settlement, a residential tenancy must be used. You may chose to use this technique if you have strong buyers and don't want to give the the option...

Sorry I wasn't clear. Like you, I make my decision based on the buyers' best interests, not on whether it's a more secure sale or not. There are pluses and minuses for both techniques. As you mentioned, the Deposit Builder may give you access to any government grants that are around but, in...

Hi Matt Short answer ;-) When I have checked out the potential buyer with a mortgage broker and feel confident they will get finance at the end of the deferment period. This is because the Deposit Builder is a far greater commitment than a Lease/Option. Cheers, Paul

Question 1. Does entering into a vendor finance agreement potentially create an interest in the property? In the case of the Deposit Builder process, the purchaser is entering into nothing more than a Contract for the Sale of Land (in NSW). Upon exchange of contracts the purchaser gains an...

I once asked a similar question, regarding Instament Contracts, of a solicitor friend and got the following response: 'The answer to your question is a technical one – there is no assignment of property in an instalment contract. What happens is that the vendor is entering into a Contract for...

Hi tobe The mortgage broker involved in the consultation mentioned above is charging the Purchasers $375 as a fee for service. Cheers, Paul

Yes, like very many financial instruments out there it could be abused. However it is good to see that the parties presenting this technique to the marketplace are strongly suggesting that: - the Purchasers get independent legal advice before authorising the Contract of Sale, and - the...

Regarding your CGT question, I'd expect that, like and Instalment Contract, if it has always been an investment property and it's sold with a Deposit Builder, exchange of contracts would trigger a CGT event. Yes the Deposit is released immediately. In the States where a tenancy agreement has...

Hi Oscar I'm guessing it should work well, especially when coupled with eligibility for the FHOG. Cheers, Paul

It's not often that a new vendor finance technique crops up but it has and here is some information about it. The new technique is called the Deposit Builder. In short, it's made up of a standard Contract of Sale for the State the property is in, along with: - in NSW, VIC and WA a...