Follow-up newspaper report to a 'rent-to-buy' issue in WA. This matter was first reported approx 6 months ago.
Hi Derek
I have been saying to vendor financiers for some time, that 'the authorities' would find a way of regulating Lease/Options, the only remaining vendor finance technique not regulated by the National Credit Code. I thought they may accomplish this regulation by an amendment to the National Consumer Credit Protection Act 2009 but the various, State based, real estate agent legislation may just do the job.
Regarding this case in WA, it has created a legal precedent and it will be interesting to see how other States react. We have already seen a lot of vendor financiers become Australian Credit Licence holders and authorised Credit Representatives. In the not too distant future I believe a lot of vendor financiers will become licensed real estate agents, with even more becoming Agent Representatives.
We saw this coming and got our real estate agent licence last year. All good for the industry from my point of view.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
I was sent this same article by another investor I know in WA (luckily he is not into rent to buyand nor am I) and I think that ultimately it wil have implications across Australia.
Before buying any property, make sure the estate agency is reputable and has proper documentation to sell properties. Some adverts posting “No down payment plan , Rent to buy scheme" etc. should be scrutinized further.
It’s good to know that victims of this scam can seek compensation. Potential victims are also encourage to call the WA Consumer Protection on 1300 30 40 54
This news is a good reminder to those buyers out there who are not very careful when it comes to this matters.
$15,000 is cheap. I would have been deceived too if it was me.
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