Tuesday, 30 November 2021

What Are The Pros And Cons Of Vendor Finance?



What is Vendor Finance?

A buyer may need a loan to purchase the house. There are different kinds of loans, like bank loans. But these loans require payment proof or a guarantor. It is not possible for people with a low pay rate. So, when a seller arranges money for the buyer, it is called vendor finance. This money is returned in installments at specific intervals of time. Purchase vendor finance homes is a completely different method. We take a look at what it means and the pros and cons of Vendor finance.

It is advised to take expert advice before asking for vendor finance. As there are some risks in these kinds of loans. So, before signing any agreement, ask the experts. Aylward Game is one of the old vendor finance advising companies. They can assist you in your property purchase.  

Risks of Vendor Finance?

You may look for vendor finance if you don’t fit on the merit of a bank loan or any other financial assistance. Vendor finance is often good, but it can be risky. For instance, these options are advertised just to attract a large number of buyers and to secure some quick sales. But it is wise to know some common risks before choosing this option. Vendor finance homes are not easy to purchase.  

In the recent era, vendor finance has criticized as a company We Buy Houses was banned by the Federal Court. As its representation was full of lies. These options are made to attract an audience who cannot even think of owning a house. These loans also have the same rules as other loans.

MS Pierce Pointed to the Common Risks or Challenges in Vendor Financing:

  • There is confusion about who owns the property during the loan agreement. Who will be paying for the utility bills?
  • These loans are of high amount. This loan is usually double the original amount of the property. So, they cannot recover what they have paid. They cannot even refinance with a bank.
  • The agreement is too complicated. None of them has equal rights. The vendor enjoys more. The buyer never owns the property, and the vendor is never out of money.
  • The consumer lacks protection, as well.

MS Pierce also included that the agreements are so complex that the buyer can never understand his benefits. He does not know how much will he have to pay in a long-term contract or what’s the condition of missing a payment. Their dirty tricks also unclear the buyer’s protection like the National Credit Code (NCC). There is no legal protection of buyers in these agreements.

 How does Vendor Finance work?

Vendor finance has many forms. Often the seller gives money to the buyer to start the transaction. Consumers can move to the property. To return the payment, monthly instalments are paid to the seller, who is not the rent.

In a Vendor Finance Transaction, we can include the Following Points:

  • Property price: This price can be different from the actual market price. The buyer pays the first deposit to start living on the property. This deposit is usually a loan from the seller.
  • Contract: This contract is longer than the normal loans. It has some extra terms and conditions like the penalties if a buyer misses a payment. It is very different from the usual bank loans.
  • Payment method: In payment, there is an interest rate of at least 2% and may also include insurance and maintenance.

Let’s have a look at a few Points to End this Vendor Contract.

  • The consumer owns the house after the end of the instalments
  • The consumer can extend or replace the deal
  • The consumer can lose hope and leave the property. And all of the investment is lost.

The consumers are left in depression. Consumers cannot afford repayments. They are still not able to ask for a bank loan. The plans of the consumer may not have worked, and now he can’t continue. The vendor will own the property. This is one of the vendor finance old dirty tricks.

Pros And Cons Of Vendor Finance
Pros And Cons Of Vendor Finance

Are there other Names of Vendor Finance?

The Name of the Vendor Finance varies on the Type of Agreement.

  • The wrap-around loan also called money mortgage: In this loan, the buyer and the current owner lives under the same roof. The buyer will have to pay the utility bills with some interest, which is profit for the seller. This loan is known as private lending and is very much different from other laws. The loan wraps around only according to the seller’s mortgage. If the buyer is unable to pay, then they may lose their investment, and the vendor can repossess the property.
  • Deposit finance: There can be a need for vendor finance for a home. This type of loan can get two loans for the buyer. Half of the payment is given by the vendor as a loan. The consumer will go to the bank to get the other half. The drawback is that the user will have to make bulky payments each month, one for the bank and another for the vendor. They can also go for the insurance implications; the penalties will arrive when false information is provided.
  • Partially vendor financed: This is a bit simple than the others. The first half is paid by the bank loan, and the remaining is paid by vendor loan.
  • License to occupy: The consumer will pay half or a smaller deposit. The rest payment can be paid via instalments. He also pays the usual taxes and the fees of property purchases. A license will be generated for him to live in the house. As this is not rent, then there will be no tenancy laws. As the loan is private so you cannot involve consumer credit laws.
  • Off-the -plan instalment plan: It is a risky contract as the buyers don’t have many rights or protection. There will be a non-refundable administrative fee, a deposit fee, and a very long instalment plan, for instance, 25 years.
  • Work-in-lieu of payment: You can also call it “Sweet equity.” In this finance, the buyer repairs or fixes a portion of the property in replace of deposit or instalment, and the rest of the payment is paid by vendor finance.

Let’s know about Rent-to-Buy:

In this scheme, the buyer and the seller agree that the buyer will rent the house. How much they pay will be considered as the share in the property. But they will not be the official owner of the property until the paperwork is clear.

Here is the Working of this Method:

  • The broker shows the buyer a high priced property.
  • The buyer will try to get a rent-to-buy house due to the high cost.
  • A tenancy agreement is signed.
  • There is an option for them to purchase the property after three or six years.
  • A deposit fee is paid.
  • The buyer will pay the rent and may also pay for the maintenance or utility bills.
  • The instalments can include both the rent and the loan.

This is a simpler way of purchasing a house.

 

Where to get Legal Advice?

Are you looking for a vendor finance home in Brisbane, Gold Coast, or Sunshine Coast? Aylward Game is here to help you with that. We are in the business for more than two decades. You can always count on us. We have given legal advice to many people. We help people in purchasing a property. Through legal advice, they are save from the false person. They don’t have to worry about legal issues when we consult them. When Mark Game started Aylward Game, he wanted to help people to get to their properties safely. Our team members are well aware of property law. We can tackle any kind of issue. So, just contact Aylward Game if you need any assistance regarding the property. 

Article Source: Vendor Finance

Monday, 29 November 2021

Director ID : The New Requirement for Company Directors in Australia

This article aims to analyze the recent decision of the Australian Securities & Investment Commission (ASIC) requiring all company directors in Australia to obtain a new director identification number (director ID).

What Is Director ID?

In short, it is a unique identifier given to a company director who has verified his/her identity with ASIC.

What is the main reason behind the director ID?

It is designed to prevent the use of false or fraudulent director identities/activities. Once the director’s ID gets recorded in a new database to be administered and operated by the Australian Taxation Office, it will further provide additional measures to trace and hold a director accountable for his/her directorship duties.

Who is required to apply and obtain the director ID?

The new requirement applies to all directors and acting directors who are registered in Australia under the Corporations Act 2001 (Cth), as well as registered foreign companies.

How this new requirement differs from the existing ones?

The law aims to prevent illegal activities by the company directors. Prior to introducing this new requirement, some company directors were able to take advantage of the corporate veil principle that would protect each director from personal accountability in the event their company fails to meet its legal and financial obligations. In this scenario and under the old regime, a director who had failed his/her duty in operating a legal, honest, transparent, and sound business, could have transferred the existing assets of the company on the edge of defaulting its obligation to a new company in order to continue trading and leaving the unpaid debt with the old company and if there was any legal action taken by the creditors, the directors would then shield themselves behind the corporate veil. The whole issue of transferring the assets to avoid liability by the old company to a new one is termed as illegal phoenix activity. However, with the new requirement now in place, it would make it very difficult for a company director who may be considering an act of phoenixing, to do so.

Is there a deadline to apply for a director ID?

The short answer is yes. Existing directors have until 30 November 2022 to apply while new directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment. ASIC requires that as of 5 April 2022, intending directors to apply for director identities before being appointed.

Is it an offence not to apply for director ID?

The short answer is yes. Under the Corporations Act 2001 (Cth), failure to have a director ID when required is an offence. A director who applies for the director ID must also ensure that he/she is not applying for multiple director IDs and does not misrepresent when applying for the director ID.

👉👉 For advice or assistance with all corporate and commercial matters and the latest update contact the Corporate and Commercial Law Team at Aylward Game Solicitors today at 1800 217 217

Article Source: New Requirement for Company Directors in Australia 

Friday, 8 October 2021

Important Information – Settlement Steps

Pre-settlement Inspection

Unless we tell you otherwise, your Contract will entitle you to undertake a pre-settlement steps inspection of the Property. We suggest you make arrangements with the Seller to undertake that inspection. You may wish to engage a consultant to assist you to undertake the inspection and, among other things, check that the Property has been finished in accordance with the agreed specifications.

Settlement Notice

We will lodge a Form 23 Settlement Notice on the title before settlement. This helps protect your interest in the Property by preventing the registration of any conflicting interest (such as a mortgage or transfer to an unrelated third party, but not a caveat or a writ of execution) until the earlier of:

  1. Two months after we lodge the notice; or
  2. Your transfer and all related documents are lodged; or
  3. It is withdrawn.

Transfer Documents

Title to the Property will be transferred to you after settlement when transfer documents are registered in the Land Titles Office. The transfer documents must be signed by the Seller and by you although we are able to sign the transfer documents on your behalf.

The transfer documents will not be prepared until the title for the Property has been created. In off-the-plan transactions, it is common practice for the Seller’s lawyers to prepare the transfer documents (as a large number of them may need to be signed by their client at the same time).

After settlement, we will lodge the transfer documents for registration unless you have a financier, in which case they will be responsible for lodging the transfer documents for registration. Registration of the transfer is critical to your ownership of the Property and you should follow up with your financier after settlement to ensure registration. If you require us to follow up with your financier, please let us know (but this will be an extra cost to you).

Utility Services

You will need to make your own arrangements for connecting electricity, gas, telephone, internet, pay-TV services, and other utility services from the proposed settlement Steps date. If a service provider will not arrange for connection from the settlement without authority or confirmation from the Seller please obtain this via the real estate law agent or from the Seller directly. It is beyond the scope of our retainer.

For more information on your specific matter, please don’t hesitate to contact one of our experienced Brisbane, Gold Coast and Sunshine Coast Property lawyers at Aylward Game Solicitors.

Article Source: Pre-Settlement Steps

#SettlementSteps #PropertySettlement #Presettlement #AylwardgameSolicitors #PropertyLawyersbrisbane 

Thursday, 30 September 2021

Employment lawyers Brisbane

The field of Employment Law presents many challenges for employees and employers alike.

Our partners Ian Field and Mark Game can take care of those employment law issues for you, including contract and policy preparation and review, restraint of trade issues, confidentiality, redundancy/dismissal, and general employment law issues and disputes.

Employment Law presents many challenges for employees and employers alike
In the event of a dispute, if it’s not possible to negotiate an outcome, we can arrange representation for you in the appropriate court or tribunal, with the benefit of our Special Counsel, Guy Sara.

LEGAL COMPLEXITIES FOR EMPLOYMENT

Employment law is massively complex, and this applies to both the employer and the employees. For the employer, there is a need to know the rules governing the hiring, remuneration, and dismissal of employees.

This knowledge is important as it helps a company protect itself in the face of the law whenever something out of the ordinary happens.

For example, as an employer, you might find yourself facing controversy over the conduct of your business towards an employee.

While at times mistakes happen due to ignorance and naivety, the law sees you as the person tasked with safeguarding the rights of those under you. As such, an employer will always have an obligation towards the employees.

At times, it is important to understand the legal ramifications that govern every single act by a company or an employee. While the employer is always the boss, there is a need to draw a line between what is acceptable behavior and what is not.

Employment law also exists to serve the employer from the employees. For example, as an employer, you may be challenged on the following: How are you protected from a member of staff who chooses to use company resources or information in a malicious nature? Are they immune from the law? What does employment law say about someone who fails to come to work for days on end without a leave of absence? As the employer, do you have the mandate to discipline that person?

The Importance Of Understanding Agreements for employment law

Laws governing the drafting, implementation, and cancellation of contracts have always been weighty. The average Joe does not understand the lingo that governs employment contracts. If you are an employee, you need to clearly understand the terms laid out in the agreement between you and your employer.

The employer also needs to understand the strict conditions of a contract in order to avoid violations and charges. Generally, there is a lot of ground involved when covering employment law, which raises the need for an expert on legal matters every time an issue comes up.

In the firm, we are fortunate to be able to rely on the experience and intellect of our two partners, Mark Game and Ian Field, when it comes to resolving issues relating to employment law.

Article Source: Employment Law 

Monday, 27 September 2021

Why Divorce Rate in Australia is So High?

What is a marriage?

Divorce causes a marriage to end legally. This is a bitter experience in anyone’s life. But before unraveling the facts of divorce let’s get to know about marriage first. Marriage is the union of two people by which they recognise their life together and have a happy sexual life.

But in legal terms, marriage is a contract between two people enforced by law. It is a social event that forms a family but there are legal consequences too. Starting from raising the children to protecting the family residence, inheriting from the other partner can be the legal consequences.

What is a divorce legally?

When one of the partners decides not to live together anymore feeling uncomfortable with the marriage, he or she can demand a divorce. But divorce is a legal term too. Divorce entails canceling all the legal responsibilities, hence dissolving the contract between a couple.

No-fault divorce;1975

The divorce rate was very high in Australia before 1975. According to the Australian Institute of Family Studies, The rate reached its peak in the 1970s at 4.6 per 1,000 residents. This rate was very alarming and had to be reduced. That’s why the Government of Australia, established new law in 1975. The Family Law Act 1975 established the principle of no-fault divorce. It also established a federal court to deal with family law issues. The Family Court of Australia quotes,” No-fault divorce means that a court does not consider which partner was at fault in the marriage breakdown. The only ground for divorce is the irretrievable breakdown of the relationship, demonstrated by 12 months of separation.” This means the couple has to be separated for at least 12 months before applying for a divorce.

How to prove separation if the couple lives together?

The couple needs to stay separate for at least 12 months before filing for divorce. But they can still live under the same roof. For that, they have to break the marital relationship completely which may include:

  • no sexual activity
  • living in different rooms
  • not having meals together
  • having separate bank accounts
  • not sharing household services
  • not representing themselves as married to acquaintances

Now let’s discuss the details of the divorce rate in Australia.

What is the divorce rate in Australia?

In the 1960s and the 1970s, the divorce rate was very high. It was about 4.6 persons per 1000 residents. But it declined when the Family Law Act 1975 was passed. This law supported no-fault divorce. And reduced to just 1.9 till 2016. But it raised again in 2017 up to 2.0. Hence the divorce percentage in Australia has reduced.

Another reason for the decline of the divorce rate in Australia is late marriage or marriage between same-sex. Same-sex marriage is now legal in Australia. In the first 6 months of 2018, 99 percent of marriages were between same-sex.

The divorce rate was 40% which has been constant for many years. But due to the corona pandemic, it has been a rush to the courts since this summer. But new statistics show, in 2019 the divorce rate has been highly increasing and reached around 47%. And Brisbane has registered 30% more divorces already by the summer of 2020.

From these studies, it is clear that a pandemic affects marriages severely.

Duration of marriage:

The largest proportion of couples separating and then divorcing are those who have been married 9 years or less, which is about 43%.

The couples who had been married for 20 years or more are highly encouraged in separation. In 1990 it was 20% and by 2010 it increased to 28%.

At what age couples are divorcing?

In 2016, the divorce rate was highest during the age 25-29 for both men and women. The couples have a steady relationship in their 40s. After 55, the couples become less likely to divorce.

Divorces involving children:

The amount of divorces involving children under 18 years has been decreasing. In 1975, the proportion of divorces involving children under 18 years was 67.6%. It decreased over time and became 47.1% in 2017. The reason behind this is the rise of divorces in short-term marriages.

Have same-sex marriages affected the divorce rate in Australia?

After the changes in Marriage Act 1961 same-sex marriage is now legal. There were 3,149 same-sex weddings were registered in Australia till 30th June 2018. And they can also get divorced but not many divorces are reported from these couples.

What are the reasons behind divorces?

People go into a marriage with so much hope. They decide to get married when they discover themselves in a comfortable relationship. It indicates the perfect bond between two persons. So, what causes that perfect bond to break apart? Why do they go for a divorce?

The Australian Divorce Transition Project categorised the reasons behind divorce into 3 dimensions. They are ‘affective issues’, ‘abusive reasons’ and ‘external pressures’.

An Australian study reported percent of divorces to blame “affective issues”. These affective issues are:

  • Problems of communication 27%
  • Lost connection 21%
  • Trust issues 20%

The other causes of divorce in Australia can be:

  • Abuse either physically or emotionally 7.4%
  • Abuse via drugs or alcohol 7.4%
  • Financial issues 4.7%
  • Work pressure 2.7%
  • Interference of family 0.6%
  • Health issues 4.7%

Tips for a long term marriage

  • Treat marriage as a long-term commitment
  • Prioritize your partner’s need
  • Respect your partner
  • There should be no trust issues
  • Maintain a happy sexual relationship
  • Cooperate with your partner
  • Be willing to change
  • Maintain equity
  • Manage time for each other
  • Support the decision made by your spouse
  • Avoid fighting unnecessarily

How long will it take to finalise the divorce?

Normally it takes 4 months to procure a Divorce Certificate or court order. It may take longer if there are other difficulties. Remarriage should not be planned before the divorce is finalised.

Grounds to file for a divorce:

  • prove that the couple has been separated for no less than 12 months of period.
  • the couple has been married for more than 2 years.
  • attended the required counselling with the family court if married for less than 2 years.
  • no fault of any of the spouses is needed.
  • at least one spouse must be an Australian citizen, domiciled, or resident in Australia for 12 months.

What is the procedure to get a divorce?

Getting a divorce is not the same anymore. That is the reason that the divorce rates in Australia have reduced. If you are thinking to get a divorce in Brisbane then Aylward Game can help you easily. Read the points below to get an idea about getting a divorce.

  • Live separate lives: Before applying for a job you must separate for at least 12 months. You can get back in touch without re-starting the 12 months for about 3 months. For instance, if you have lived separated for 4 months and again got together for 3 months you will only have to live 8 months separately to complete the 12 months.
  • You can live separately under one roof: You can share the same roof even when you are separated. The court will check if you are having sex, sharing meals, or sharing bank accounts. Your relatives should believe that you are separated.
  • Remarrying: Don’t think to remarry until the divorce is finalized. Don’t make quick plans. You can get married once the divorce is granted.
  • Property and children’s arrangement: The divorce will not resolve the property or children’s issue. You will have to file a separate case for this issue.
  • Married for less time: If you are married for a small time and still demanding a divorce. Then you should visit the family counselling. Get a certificate from them and submit it to the court.

When applied for the divorce, do I have to attend the court hearing?

It depends on some conditions. You may or may not have to attend the court hearing. Let’s have a look at them:

  • If you don’t have any children under 18 years. Then you will not have to attend the court hearing; it applies on both sides.
  • If a joint application is applied then you will not have to attend the court hearing, even if you have children under 18 years.
  • If a sole application is applied then you may have to attend the court hearing on having a child under 18 years.

How much will a divorce cost in Brisbane?

The typical cost of a divorce consists of legal costs and court fees. The amount of both fees is based on the procedural value, which depends on the income and assets of the spouses. A general figure is therefore not possible.

However, it costs $890 for every hearing. Usually, each spouse pays their own lawyer’s costs plus half the court fees. In this case, the 50% sharing of the legal fees should be contractually agreed in advance utilising a cost-sharing agreement between the spouses.

If this is the case, each spouse only pays half of the costs otherwise incurred. If you want to get a divorce from Brisbane, you shouldn’t be afraid of the divorce costs. If the financial means are not sufficient for a divorce Qld, the court and legal expenses will be covered by the state – and the chances of this are good.

How can Aylward Game help?

Though Australia’s divorce rate has declined some issues can demand a divorce. We can help you in many ways to solve the issue. For more information on your specific matter, please don’t hesitate to contact one of our experienced Brisbane, Gold Coast, and Sunshine Coast Family lawyers at Aylward Game Solicitors.

Article Source: Divorce rate in Australia