Vendor Finance Legal Advice

From: Glenn Mott


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Hi All,

I am currently investigating buying property to sell via vendor finance and
have arranged to meet a lawyer this week. Below is the letter he has sent me
after our initial telephone conversation.

My plans are to get legal advice, buy a house in a "Aussie battler" suburb
and offer it for sale via vendor finance at a price that covers my costs and
provides a nice profit for my time.

Currently, I have a family trust that has myself as the trustee. On advice
from my accountant, and pending the green light from this lawyer (due to me
living in a different state to my accountant and him requesting I seek local
advice before making any changes) a pty ltd company will be setup to become
the trustee.

As this will be the first time I have engaged a lawyer/soliciter, my
questions to the forum are:

1. Do the fees seem fair?
2. Are there any special questions I should be asking?
3. Should there be a separate trust for rentals and wraps?

Thanks

Glenn


>>Glenn,

Further to our discussion last week, we confirm our meeting on Thursday.

We outline our fee structure as follows:

1. We will charge for our time spent at our meeting, and for our
subsequent letter of advice, on a time cost basis of $225 per hour, plus
GST.

2. We estimate a minimum of 2 hours to meet with you and provide the
letter of advice.

3. More time may be needed, depending upon the complexity of the matter
and the advice you are seeking.

4. We require a payment in advance of $550 prior to, or at, our meeting
on Thursday, on account of our costs and disbursements.

Please confirm this is acceptable to you.

Regards,

Greg


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Hi All,

I am currently investigating buying property to sell via
vendor finance and have arranged to meet a lawyer this week. Below is the letter
he has sent me after our initial telephone
conversation.

My plans are to get legal advice, buy a house in a "Aussie
battler" suburb and offer it for sale via vendor finance at a price that covers
my costs and provides a nice profit for my time.

Currently, I have a family trust that has myself as the
trustee. On advice from my accountant, and pending the green light from this
lawyer (due to me living in a different state to my accountant and him
requesting I seek local advice before making any changes) a pty ltd company will
be setup to become the trustee.

As this will be the first time I have engaged a
lawyer/soliciter, my questions to the forum are:

1. Do the fees seem fair?
2. Are there any special questions I should be
asking?
3. Should there be a separate trust for rentals and
wraps?

Thanks

Glenn


>>Glenn,

Further to our
discussion last week, we confirm our meeting on Thursday.

We outline our fee
structure as follows:
<OL>
<LI>We will charge
for our time spent at our meeting, and for our subsequent letter of advice, on
a time cost basis of $225 per hour, plus GST.
<LI>We estimate a
minimum of2 hours to meet with you and provide theletter of
advice.
<LI>More time may be
needed, depending upon the complexity of the matter and the advice you are
seeking.
<LI>We require a
payment in advance of $550 prior to, or at, our meeting on Thursday, on
account of our costs and disbursements.</LI></OL>
Please confirm
this is acceptable to you.

Regards,

Greg


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Reply: 1
From: Michael G


Glen,

>1. Do the fees seem fair?

What fees?

>2. Are there any special
>questions I should be asking?

Which state are you in?, I assume from your email address your in W.A.? This may affect what you can / cant do.

1st question, does the solicitor have experience with vendor finance?, good measure would be do they know rural property law (as they deals alot with vendor finance)

2nd question, are they familar with the Credit Code

3rd question, are they familiar with the section on instalment contracts in the Sales Act?

4th question, are they familiar with the FHOG act in regards to instalment contracts

5th question, are they comfortable with your business model - eg; you dont want an advisor who morally believes what you are doing is not ethical and thinks its an abuse of peoples trust etc. Remember this is your spokesperson when they speak to the Vendors/wrappee's solicitors. You dont want someone putting down what you do.

>3. Should there be a separate
>trust for rentals and wraps?

Structures depend on your comfort level in regards to asset protection. Different structures will also change your tax/income position.

Ask your advisor, what are ALL the options you have, what are the pros/cons of each structure. What legal implications are attached to each, then ask similiar questions of your accountant, then select the structure which offers you what you want.

Regards
Michael G
 
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Reply: 1.1
From: Glenn Mott


Hi Michael,

Thanks for your reply. I see that you post now and again about vendor
finance and have even sent a nice letter to The West Australian to point out
the benefits for people buying property from wrappers.

Did you start by seeing a lawyer or buying one of the Wrap Packs??

Glenn
 
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Reply: 1.1.1
From: Michael G


Glen,

I started by visiting near 30 laywers and talking to all of them. Whenever I'm in a group (networking or otherwise), if I find an accountant, solicitor or broker mentioned I endevour to interview them to see what they are like.

Ive attended a few seminars, have yet to get a wrap pack.

Michael G
 
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