Vendor Finance Contract

[outbackjack]

Hi All,

I am buying a block of land. Long story short I a may be moving to Darwin, I cant afford to be paying the high rents and dont yet enough deposit for a house.

So I am looking at a block of land a bit further out. It does have electricty and thats about it. So will put a Caravan on it for a while and probably build a container home on it.

Vendor is willing to give me finance for 12 months. Is there somewhere online I could get a vendor finance contract? I have contacted one lawyer so far and they have qouted 3k to draw it up...... I didnt think it would be so expensive.

Anyone else got some clues? The loan will be no different than going to the bank I thought.

Regards
OBJ

 

[kathryn d]

We wrote our own, then our lawyer put the 'legal' stuff on it.
This way they knew basically what we wanted.
Interest rate
Default procedure
Ammortization

Contact another lawyer?
Maybe the vendor will pay his lawyer to write it up?
(we always write our own, so it is slanted in our favor)


Good luck

 

[Ausprop]

the Vendor Finance Institute has a list of vendor finance lawyers. I believe $1500 would be more appropriate.

 

[Terry_w]

Hi All,

I am buying a block of land. Long story short I a may be moving to Darwin, I cant afford to be paying the high rents and dont yet enough deposit for a house.

So I am looking at a block of land a bit further out. It does have electricty and thats about it. So will put a Caravan on it for a while and probably build a container home on it.

Vendor is willing to give me finance for 12 months. Is there somewhere online I could get a vendor finance contract? I have contacted one lawyer so far and they have qouted 3k to draw it up...... I didnt think it would be so expensive.

Anyone else got some clues? The loan will be no different than going to the bank I thought.

Regards
OBJ

Vendor would essentially be lending you money. they should be the one drafting it, but probably make you pay for it.

If in NSW you would add some special conditions to the contract of sale and then enter into another loan agreement. Possibly a mortgage too.

 

[outbackjack]

Tried the local Darwin expert on vendor finance recommend by the Vendor Finance Institute.

He wasnt intrested, all to hard because I am not in the NT, he then changed tack and said he has a few cases coming up and couldnt help me.......

Tried another lawyer who wasnt intrested.

So still after a contract template if someone has one.

It will be a standard mortgage over 10 years. Vendor doesnt know much about them and letting me do the leg work and doing conditions etc.

So think I will set it for 10 years and intrest set at 2.5 percent above RBA interest rate for life of loan.

It will P and I Loan. So will need to find a spreadsheet that will work out payments etc etc and the ability to vary interest rates, extra payments etc

Cheers

 

[outbackjack]

Hi All,

I wouldve thought some one on the forum wouldve done a contract before.

Is my post in the wrong section?

 

[jrc77]

Or they are treating it as their (or their lawyers) intellectual property and don't want give it away?

Regards,

Jason

 

[outbackjack]

True I guess, never thought of it that way.

However I thought a lawyer would have a standard template for it. So I didnt think there would be a lot of effort involved. However I have tried two now.

 

[outbackjack]

Well still looking for a lawyer who is willing to do a vendor contract. Seems none are around.

The vendor as seen a lawyer who is a specialist in Vendor finance and he suggested the following.


"Vendor finance is the concern plus the time frame and interest adds to the complication and costs. It is recommended to be paid in installments for 2 years then a mortgage for the remainder of the time, a caveate on the property to prevent me from selling the place to someone else before the deed is lodged and on it goes, most of the time costing $s to progress."

So if I dont come up with something fast, I am going to lose this deal.

 

[Terry_w]

Send me an email and I can put you in contact with a property lawyer who may be able to help.

 

[kathryn d]

Well still looking for a lawyer who is willing to do a vendor contract. Seems none are around.

The vendor as seen a lawyer who is a specialist in Vendor finance and he suggested the following.


"Vendor finance is the concern plus the time frame and interest adds to the complication and costs. It is recommended to be paid in installments for 2 years then a mortgage for the remainder of the time, a caveate on the property to prevent me from selling the place to someone else before the deed is lodged and on it goes, most of the time costing $s to progress."

So if I dont come up with something fast, I am going to lose this deal.

This is a Rent to Own type deal, where you are buying an Option.
We do this with our tenants (Canada) and it is never written in the tenant's best interest.

A Vendor Finance, is the same as buying from a bank...except the vendor is holding the mortgage.
It isn't rocket science.
When we did it, we wrote our own, took it to our lawyer, who then put it in legal terms...but our lawyer is very competent.