Underbelly: housing schemes- Vendor finance and rent-to-buy housing schemes called a ‘black market’

Underbelly: housing schemes

 

Vendor finance and rent-to-buy housing schemes called a ‘black market’

 

 

The seemingly unstoppable rise in housing prices over the last decade has caused many Australians to feel ‘locked out’ of the dream of owning their own home.

 

Perhaps in response to this, a string of new businesses (called ‘equity providers’) have opened shop and now offer purchasers the ability to take a loan to pay the deposit on their home. The purchaser then makes their usual mortgage repayments to a bank in addition to paying back the equity provider for the deposit, usually over a period of 5 to 10 years. Assuming the purchaser has met their instalment payments, each year the equity provider transfers a small portion of ownership to the purchaser.

 

While this might appear to be great news for young people entering the property market, a recent investigation has revealed that people who enter into these arrangements are sometimes left worse off or even financially ruined.

 

The way the equity provider often charges what they call ‘option fees’. These fees are paid in exchange for the right to purchase the property from the equity provider at an agreed value when the instalments for the deposit are paid. The option fees don’t go towards paying off the debt.

 

The reason these arrangements can be risky is because the value of the property, and therefore the price the purchaser pays the equity provider at the end of the agreement, is agreed at the beginning of the agreement and not updated at any time before the purchaser purchases the property from the equity provider. Just some of the issues this creates for the purchaser include;

 

·        Some equity providers have over-inflated the worth of the property and set very high final purchase prices;

·        The purchaser ends up paying exorbitant option fees as well as funding two mortgages, and is  far worse off than before the agreement; and

·        Even if the purchaser is able to meet the repayments, there is then an over-inflated price for the property to be paid at the end of the agreement.

 

Some consumer advocates have called for these schemes to be banned, or at the very least provide protection under the National Credit Code.

Domestic and Child Violence Epidemic

DOMESTIC AND CHILD VIOLENCE EPIDEMIC

The media is currently filled with horrific stories of violence involving children and families.

There is a whole web of interacting responsibilities and authorities designed to intervene and short circuit these situations. Often they fail, but it does not mean that they are not there.

Police

Police will attend any incident of domestic violence to which they are alerted. It can be a neighbour, a passerby or an occupant. Police will attend as soon as resources permit. The first decision that police officers make when arriving at the scene is "who is the threat?" This is an attempt to diffuse the situation and create a circuit breaker. It is not always the first step to Domestic Violence Orders.

Police will have to make a value judgment as to what intervention, if any, is appropriate. There are times when intervening to remove a party will provoke a violent response from the other against police.

If an intervention decision is made, police have the authority to remove any person from a domestic violence scene, and incarcerate them before they can be brought before a Magistrate.

This does not always improve the situation, but is an instantaneous decision that police have to make when arriving at a scene.

When next a Court can deal with the matter, if police intend to proceed with Domestic Violence Orders, an interim order may be made. It is quite common for a party who was not removed from the scene to be the subject of a cross-application for a Domestic Violence Restraining Order.

The matter will then go through the Court process.

CAR ACCIDENT – WHAT TO DO/ SAY AT THE SIDE OF THE ROAD?

1.          Move the vehicle out of the traffic.

2.         Slow down, take your time, secure the handbrake and put the car in gear.

3.         Safely get out of the car.

4.         Make an assessment of the attitude of the other driver.  If that attitude is aggressive,  retreat. 

5.        Do not, even if the accident is completely your fault, admit liability.  In some cases this can void your insurance. 

6.        Record details of the other driver and any passengers or witnesses – name, address, phone number, registration, make, model, driver’s licence number, name of insurer and motor vehicle owner.

7.         Make a note of any statements made, particularly statements referring to liability for the accident.  A contemporaneous note made at the roadside or shortly after, is very powerful if there is a dispute later.

8.          Report to a doctor if you have even the slightest symptoms of injury or illness.

9.          As soon as practicable, sit down and write a summary of what happened.

These actions, taken in a timely manner, can make all the difference to any claim made by or against you.

WHAT TO LOOK FOR IN A SOLICITOR

Costs

Costs of conveyancing vary wildly from firm to firm.  Be assured that you get what you pay for. 

Ask questions about seniority of the people who will be acting on your file and what searches will be done. 

Ask whether you will get a copy of the searches and an explanation of the search results. 

Ask whether perusal of your mortgage documents from your bank is included in the conveyancing price. 

Ask whether unqualified staff or junior staff will be acting on your conveyance. 

Ask about the systems and procedures in place to ensure that nothing is missed on your file.

At Bennett Carroll Solicitors, you get more than you pay for.  Senior people, search results explained in an all inclusive price.  No junior staff, no unqualified staff, and a complete management system to ensure nothing is missed on your file.

Accessibility

Over 70% of complaints to the professional body governing Lawyers relate to inability to get a Lawyer on the phone or to get that Lawyer to return telephone calls. 

Ask whether the firm has a policy on accessibility and returning telephone calls when you have a question you want answered quickly.

At Bennett Carroll, we answer your questions and your calls.

Provision of information

Ensure that you are happy that you are going to receive up to date information as your matter progresses. 

Ask if there is a policy regarding copies of correspondence in and out being sent to you. 

At Bennett Carroll Solicitors, providing you with information and copies of correspondence is automatic.  You do not have to chase us for information.

The comfort factor

Make an assessment when speaking to each law firm of whether they have an approach which makes you comfortable.  Are you going to be able to work with these people?

At Bennett Carroll Solicitors, we are intent on taking away the stress and working closely with you to ensure complete satisfaction.

A language you can understand

Look at the style of communication used in these initial telephone calls.  Do they respond to your questions using your kind of language or is it “Legal Ease”?

At Bennett Carroll Solicitors, we talk commonsense no frills English that you can understand.

BELLIGERENCE VERSUS CO-OPERATION

Ask about their approach to resolving disputes over your matter.  Some firms will automatically take a belligerent, aggressive and obstructive attitude.  Others, whilst protecting your rights, will work in a co-operative manner to try and ensure that your Contract settles. 

At Bennett Carroll Solicitors, we protect your rights and work in a co-operative manner to ensure settlement at all times.



Bennett Carroll History

Bennett Carroll has been serving the community of Brisbane since 1974.

The firm was started by Joan Bennett in the Upper Mt Gravatt area, and she was joined by Frank Carroll in 1977.

The present CEO Guy Gibbons joined as an articled clerk (apprentice), in 1986, and became a partner in 1988. 

Guy was appointed the managing partner in 1992.

The firm began its journey into becoming a wireless, paperless file management in 1994, and over the next 10 years perfected the wireless, paperless file system, allowing us to send lawyers with laptops out to clients, enabling them to work anywhere, seeing every file live 24 hours 7 days a week. 

The present evolution of the system was installed in January 2004.

In May 2004, with the installation of a video conferencing system, Bennett Carroll commenced to grow and now has 4 offices in south east Queensland, and affiliate offices in Sydney, Melbourne, Adelaide and Perth all working simultaneously on the Bennett Carroll system.

In 2007, Bennett Carroll moved its Brisbane’s south office into Hughesville Homestead, the historic and iconic 1870s homestead at Eight Mile Plains on the southern outskirts of Brisbane.

Although not the largest office in the Bennett Carroll group, it is certainly the best known, and continues to attract visitors as a tourist destination in its own right, something a little unusual for a law firm office. 

Client File Access

Since 2009 Bennett Carroll clients have been able to securely dial in at any time of the day or night, and see the progress of this file, checking on the status of matters such as whether correspondence has been sent or received, documents filed, or whether a deadline (building pest or finance in a conveyance for example) has been complied with.  This saves clients having to ring or enquire on important milestones for the file.  It also allows commercial clients with multiple files, to monitor the progress on an ongoing basis.

Bennett Carroll – Truly National

Since the mid 80s Bennett Carroll have had sister firms operating in most locations in Australia and New Zealand and as far as field as North America and Western Europe.

Now, we are proud to say that the Bennett Carroll system has spread throughout Australia with firms in every capital city operating on the Bennett Carroll system.  Bennett Carroll firms work seamlessly in each capital city, entering data and maintaining their files on the Bennett Carroll servers.  This allows clients to use their secure password process, to monitor the progress of the file all around Australia, regardless of which Court or which state is applicable.  A client with business in Queensland, New South Wales or Victoria for example, can now instruct Bennett Carroll and have the work done using local knowledge, while still staying within the Bennett Carroll group and watching the file directly, electronically, on an ongoing basis.  This is enabling the Bennett Carroll Group to capture work all over Australia, ignoring the increasingly irrelevant state borders.