Canberra Times sinking the boot into wrappers

[geoffw]

An article on wraps has been published in today’s Canberra Times. The whole article is 13 paragraphs- here’s an exert. (The article was not published on the web)

Buyers urged to be wary of risks

Canberra Times, 9 July 2003
By Graham Downie

Numerous risks of buying real estate using vendor finance are being highlighted by the ACT Office of Fair Trading.

The practice can be legal but it provides an unethical vendor many opportunities to exploit a buyer.

Solicitor in the compliance section of the office Dom Bilbie said yesterday that any decision to enter into a vendor finance contract needed to be fully considered because of the potential for the matter to have long-term and adverse consequences.
Contracts sighted by the office have been prepared by a solicitor in the Canberra area.

They provided for interest of 2.5 per cent above the rate of a nominated lending institution and for all money paid to be forfeited if any payment was missed during the term of the contract.

The vendor remained the legal owner of the property until the entire contract price was paid.

Last paragraphs

But (ACT Fair Trading director) stressed the need for people considering this type of finance to obtain independent, qualified legal advice before signing any contract.

Known as wrap finance, the concept of vendor finance is promoted by Rick Otton in his web site, www.creativerealestate.com.au

 

[Jas]

I like how they manage to tar Rick Otten as a greedy, unethical wrapper. All by assocation.

I love journalism.

Jas

 

[michaelg]

Hi,

Geoff, could you post the link for me thanks.

MichaelG

 

[geoffw]

Michael,

There's no link on that one sorry. I just typed out what I could when I had the paper.

If I get a chance tonight I'll try to fill in the other bits.