If you introduce a seller to a buyer. setup the paperwork directly between them and take a payment for doing so then your acting as a REAL ESTATE AGENT. As such you need to be a registered agent to do so.
If you do these transactions you also need to monitor it until it comes to an end; as the parties do not have a proper understanding of what they are doing or how to fix any problems that may occur.
As an additional precaution it would be wise to have the payments managed by a Vendor Finance management company.
Set them up for success with integrity, and everyone will win.
estate agent or agent means any person (whether or not he carries on any other business) who exercises or carries on or advertises or notifies or states that he exercises or carries on or that he is willing to exercise or carry on or in any way holds himself out to the public as ready to undertake the business of—
(a) selling buying exchanging letting or taking on lease of or otherwise dealing with or disposing of;
(b) negotiating for the sale purchase exchange letting or taking on lease of or any other dealing with or disposition of;
(c) collecting rents for—
any real estate or business on behalf of any other person;
Estate Agents Act 1980
The first meeting for 2013 was held in Brisbane on Wednesday evening. Great turn out with a lot of new interest. We talked about how vendor financiers were actively helping many negative cashflow investors turn their property around to at least a neutral position. This allows the investor the financial relief they did not know existed.
Also discussions around assisting those with houses worth less than their loans.
We had our first Vendor Finance Association meeting in Brisbane last night at the Ibis Hotel. We were pleasantly surprised to see so many people attend the meeting and I think a good time was had by all. It was lovely to see people that we have not caught up with for a very long time as well as many new faces that we had never met before. The input from a number of the attendees who are active Vendor Financiers was absolutely fantastic.
A special thank you from myself to Jason for coming along and sharing some fantastic ideas and great input for everybody there.
We look forward to making the meeting is a regular event next year with four meetings on a quarterly basis the same as the other states.
Again thank you for such a warm reception here in Brisbane.
Have a read and make your own decision…
As previously stated, the VFA does not support the use of the “transaction engineer” type transaction.
From a Previous Post
We do Not recommend that this strategy be actually used as it is taught for at least the following..
1. You are putting 2 clients together who have no knowledge or education concerning their rights and responsibilities concerning the deal they are involved in.
2. If things go wrong neither client has a clue how it should be dealt with and things go wrong very quickly. The repercussions for the clients can be financially devastating.
3. You are acting as an agent, and unless you have a Real Estate agents license your actions are illegal.
4. Putting both your clients financial future in a very vulnerable position.
The VFA committee does not advocate the ‘Transaction Engineer’ Strategy and would urge any members that have done these deals to contact the VFA to find out how to remedy the situation and to ensure the proper protection of both the Vendor and Purchaser in these transactions.
The Melbourne VFA meeting last night was held at the new location in the Matthew Flinders Hotel Chadstone.
We had solicitor, Lewis OBrien, attend and have a chat to us about paperwork changes and the problems with poorly written and prepared contracts, stamp duty for lease options and much more.
We had the pleasure of Felicity Heffernan attending from NSW. She gave a great presentation about properly qualifying your clients.
Russ Townsend has put together a program to assist ACL holders with annual compliance and presented this last night. He will run a training on this and if your interested contact the VFA using the form provided and we will pass this on to Russ.
A very good night had by all.
We had the Gold Coast VFA meeting the other week.David and Julie Siacci chaired the meeting and we had a good interactive meeting. We looked at Options and particularly excersizing them as well as many questions from the members.
Thanks to those who attended for a great evening.
The committee and members would like to extend many thanks to Brett Maudie for heading up the meeting on the Gold Coast. Without such selflessness of the members who convene the meetings we would not have a VFA.
Thanks Brett and good luck in your endeavors.
Dave Siacci, Julie Siacci, Simon Buckingham, Shauna Shaw.
David and Julie Siacci will be travelling to Perth to attend the next Perth Vendor Finance Association Meeting on 8th September 2012. Please note the new date of meeting.
The next meeting for the Melbourne branch of the VFA will be held Matthew Flinders Hotel, 667 Warrigal Rd, Chadstone, VIC, 3148.
The NSW government will limit full stamp duty concessions to those buying new homes from January 1, 2012.
First-home buyers will no longer have their stamp duty subsidised by the state government unless they buy newly constructed homes.
Yes this means no FHOG and no Stamp Duty concessions for First Home buyers.
As an added bonus Land Tax thresholds will rise to capture more revenue.
From October, a first-home buyer who purchases a an existing home will get no assistance fro the government.
First-home buyers of existing properties, about 90% of the market segment, will receive no government assistance with major ramifications for the used home market.
From October 1, 2012, the first-home owner grant scheme will be replaced by the first home owner grant (new home) scheme. The new scheme will only apply to first home owners who purchase or build a new home valued at up to $650,000.
The grant will increase from $7,000 to $15,000 from October 1, 2012 to December 31, 2013 and to $10,000 from January 1, 2014.