Wraps

[Prince]

Hi,

I am based in Melbourne and am in the process of wrapping an existing investment property so that I can increase my cashflow.

I want to know what I need to do to be compliant with UCCC laws and other legal matters. Is there a form that both I and the purchaser can sign to be compliant?

Also.. the purchaser may want to lodge a caveat on the title to "register their interest" in the property until they refinance in a year or two. I need to know if lenders get notified when caveats are lodged on titles to properties whom they have financed. I do not want my lender to find out I am wrapping the property as they may decide that I am breaking the mortgage agreement and call on the loan within 30 days. I purchased the property as a regular investmen without knowing that I will wrap it therefore there has been no disclosure.

One last question,

The purchaser has offerred to pay a deposit in cash and has asked for me to list the purchase price as the remaining loan amount so that they can save on stamp duty when refinancing. Should I be concerned about this?

Thank You.

 

[Lissy]

Hi Prince
I'd recommend that you sit down with a lawyer experienced in wraps and they'll ensure you do it properly!
I won't post any names or numbers here, but you can check out the wraps assn at www.financewraps.asn.au or alternatively private message me and I'll pass on a couple of names.

 

[Terryw]

You could wrap using a lease option instead of an installment contract. This would avoid the problem of disclosure. And it could be structured to work like a PI loan.

I don't think the lender would find about the caveat if it is lodge after settlement.

 

[NealeT]

Hi Prince,

I have done two wraps using Lewis O'Brien (Melbourne). I found him extremely efficient and he sure knows his stuff when it comes to WRAP contracts.

I'ts also a lot easier if you get him to do the conveyancing as well as you avoid doubling up on various costs.

Last WRAP contract was $660

His web site is http://www.lawyer4nix.com.au/mainpage.html

Hope this helps.

Neale

 

[Bear924]

Prince,

Perhaps I'm naive however my view is that you should never do things under the carpet as at the end of the the only thing you have is your integrity.