1. With instalment contracts tittle only passes on completion. Vendor keeps their mortgage until completion too. Think of a normal settlement as being 42 days, an instalment contract just blows this 42 days into 30 years and allows you to live in the property until completion.
2. Never heard of this before. What do you mean by “buy off the debt”
3. Could you please elaborate on this? Transportability of a loan means you can take the loan with you if you sell a property, ie just substitute your security/collateral.
4. Taking over a mortgage? Any lender would surely want to make sure you as the new borrower could afford the repayments. Substitution of collateral would mean changing the security for the loan, ie changing the property.
5. As per normal. Trustee of the trust enters into contracts.
Thanks for the insight Terry,
regarding Q.2, I actually phoned Rick's office and they explained it a bit better, essentially after 1-2 years after the deal is done, you can offer the buyer to add value to the property and refinance in order to "buy me out" and own the property.
Regarding Q.3, it is still a mystery to me to be completely honest. I think it's related to the fact that me as the "mediator" of the deal, shift the responsibility of making repayments towards the seller's mortgage.
Thanks again,
D.