Hello everyone
I am in the midst of my first wrap in Queensland and in the course of my advertising spoke with a potential wrappee very hurt by a company called Homebuyers Express.
He claimed he had paid up till now 3 monthly payments of $460 pw for a house purchased for $190K. He has put in a $15K kitchen on the understanding the house was his but has now seen his name is not on the paperwork and he has been told he is not the owner and never would be. He only put $3K deposit on the house which made me suspect he had in fact bought an option but he was insistant the house was purchased.
Needless to say he wanted nothing to do with a purchase from me where he doesn’t have legal owership. But I sympathised with him and he unburdened himself, so I don’t expect any negative ramifications from the conversation.
But I’m wondering what people know of Homebuyers Express and how I might have handled him differently in light of his good wrappee credentials.
Cheers to all
JenniferWhat can you do? If he wont have anything to do with a wrap, there’s nothing you could do anyway. Just find another wrappee.
Didn’t the wrapee have a solicitor look over the contract and make sure it was legit? He certainly should now – under what circumstances could someone charge $3k up front for a standard rental agreement?! If he can’t fight under the fair trade practices act, then he should at least be able to use the tenancy tribunal to get some of his money back.
If you were wanting to approach him with a wrap agreement, I would ask to have a meeting with him and his solicitor so that you could go through the proposed wrap agreement and show how he is protected. This way you could prove that no matter how burnt he got from this other group of people, you are offering a legit and legal deal that will be of benefit to him.
Thanks for the feedback
I called the potential wrappee with your suggestions and he has since had some success with purchasing the house with his solcititor’s assistance. Not sure if it’s the same solicitor that obstensibly checked the ‘purcahse’ documents to start with.
Though I’ll get nothing out of it, I felt for the goodwill of the industry to pass on the advice. He told his solictor what I am doing and the solicitor said that would have been fine but his contract with Home Express was not a fair one.
Anyway, this client’s on his way and I’m still hoping for my buyer.
Thanks for the responses
JenniferHi jennifer
And welcome to wrapping in Qld.
I am sorry that find it hard to believe that the person you spoke to was not aware that he was merely signing a License to Occupy or Lease Option Agreement.
I have seen Home First paperwork and whilst I dont disagree that the element of disclosure leaves a lot to be desired the Contracts are quite clear in their wording.
I just wonder if the purchaser had $15,000 to put in a new kitchen and presumably also qualified for the $7000 FHOG he disnt approach a standard lender for his finance assuming his credit was acceptable.
We as a company fully disclosure everything in our wrap contract and sometimes i think we go overboard but compliance is in issue and it is best to er on the side of caution.
We will shortly be releasing a National 105% lending scheme availiable soley to First Home Buyers where their names will be on the deed from Day 1 and will to an extent alleviate some of the concerns wrappees have.
Look forward to hearing how your first few wraps go.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
Any Court would allow recovery under equitable principles. The person who paid for the kitchen has an equitable interest in the property and can slap a caveat on the property in two seconds preventing any further dealings by the owner without their permissions or until payment of what is owed plus any value added to the property plus interest is paid in full. This is a common law principle.
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Essential LinksRobert don’t normally disagree with you but
in Qld if the person who entered into a License to Occupy contract replaced the kitchen without the prior consent of the owner he would be in breach of the Contract and would certainly not have a caveatable interest in the property.
Our License to Occupy and Installment Contract are specific in that an any alterations whether requiring Council Planning Permission or not must be approved in writing by us.
Other considerations are when the tenant or wrappee decided to do work on the property in excess of $6600 (I.e replace the kitchen) an owner builders permit is required.
If this is not obtain and the property is sold by us as the tenant decided not to take up his option or the property is reposessed we then become liable.
The easy way to ensure what Jennifer outlined does not happen is to ensur eyou get good legal advice. We insist on a Letter of confirmation advising that the purchaser has obtained Indepedant Legal advice prior to the possession date.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
Hi guys,
I’m not sure that I still understand the concept of wrapping. My understanding is the ‘purchaser’ doesn’t never gain control of the title, therefore on what grounds are they able to obtain the FHOG. It have seen this idea lot for Steve and David but yet there is no explaination on how the grant is obtained.
Thanks
I agree with Robert and disagree with Qlds007. There would be a caveatable interest under equitable principles. He would be able to get back what he has put in.
In response to the last couple of post on this topic:
1) Cruiser hate to say that Judge Geoffrey Thompson disagreed with you and agreed with me in case we took 3 years against a wrappee in the Rockhampton County Court. The client has constructed an illegal extension using his own funds without the expression or consent of the Planning Dept of the Rockhampton City Council or us as the owner.
The Court ruled in our favour and stated that the wrappee had NO caveatable interest in the property and gave an order for the caveat to be removed under our Power of Attorney clause.
None of the net sale proceeds of the subsequent sale where returned to the wrappee.
2) xulder – A wrappe is certainly entitled to make application for the FHOG although the payment of this is different in each State. In Qld payment is only made once certain conditions are met which include:
A) A minimum of 10% of the installment contract price has been paid in both Principal & Interest subeject to this exceeding $7000.
The contract has been on foot for a minimum of 1 Year and has been conducted satifactorily.Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
OK, I stand corrected, but I’m surprised. Seems a bit harsh to lose everything you’ve put in.
Cheers
Cruiser
The contract has been on foot for a minimum of 1 Year and has been conducted satifactorily.You must be logged in to reply to this topic. If you don't have an account, you can register here.
