Wrappee questions

From: Michael G

Hi guys,

We've started to get back some questions from people who've answered our ads.

I'm sure the more experienced have had them, so I'd be interested to hear your thoughts.

1) Client was married, husband brought the house into the relationship, Client (single mother) was not on the title. They get divorced and Client receives a small payout. Apparently she doesnt qualify for the FHOG because of this. The "clerk" at the FHOG inquiry line was not helpful in suggesting possible ways to confirm this or not. Is there anything in particular we would need to find out to see if our Client would be qualified.

2) Her solicitor wants to know how the Client's interest is protected. Ie, what happens if 10yrs down the track our entity goes bust or something? The structure we intend to hold the properties in would be a company trustee/trust, so the property title would be owned by the trust, until the last installment is made. I think if I personally went bankrupted, then the property is still protected. And if we trade through the company, then still the property is protected in the trust, because the company itself doesnt own the property right?. So the only way the property would be lost, is if the client failed to pay and the bank foreclosed the mortgage right?

3) The Solicitor wants to see the contract at this time, I'm not sure how to approach this. Our system was to hand it over as a normal deal, ie when its ready to sign. I'm thinking our creating an extract which just shows the schedule, basically the clauses when the Client needs to be aware of anyway. How have other people handled this scenario diplomatically?

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