I’ve completed a number of wraps here in WA and am wondering if there’s anyone on the forum doing wraps or lease-options here as well? It would be good to discuss and maybe share ideas, etc.
Jason.jscott,
I would love to know more about doing raps in W.A
How many have you done, and any prods at all along the way????
RegardsHi, is wrap still legal in WA? Or better way to ask, do you know in which states that wrap is legal? Coz I heard that it’s not for every state.
Just question from novice.
From FUNStill legal.
If you only do say 1 or 2 you are pretty much ok as far as licensing.
If you do more (and can be seen as making a business out of it) you will need a credit providor’s licence which will entail a cost upfront and then for each loan.
Later………..
All things are possible to the person who believes they are possible.
Whateve the mind of man can conceive and believe, the mind can achieve.
Napoleon HillThanks for the info, HotRod.
From FUN
It’s a wrap! Mortgage wrapping is illegal in WA!
You really need to check on this one! Department of Consumer affairs says you need a credit providers licence to do any amount. You are basically lending money without a licence. They took someone to court in WA and he got fined $2k. I talked with Rick Otton and he said he had talked to consumer affairs in WA and his advice was ‘be very careful’ May pay you to contact him too!
Here’s a link: http://www.docep.wa.gov.au/media/media/2004/April/Mortga.html
Apostle
Hi
“Wraps are legal everywhere in Australia except South Australia.” This is a quote from Steve, taken from this web site. In south Australia you cannot use an Instalment Sales Contract (a wrap) but you can still use a Lease/Option (and many people do).
“Consumers considering providing finance through a mortgage wrapping arrangement should be aware that it is illegal in Western Australia without the appropriate license. To provide this type of credit to WA consumers they must be licensed as a credit provider and comply with the Consumer Credit Code.” This is a quote from the Western Australian Department of Consumer and Employment Protection’s web site and, as you can see, selling a property in W.A., using an Instalment Sales Contract (a wrap) is legal in W.A. as long as you have a license and comply with the UCCC.
Considering the profitable nature of a well run Vendor Finance (Wrapping) business, I certainly would not hold back starting such a business in W.A. because of the costs involved in the license application process or the ongoing associated costs of the license. You can find an application for the license at:
http://www.docep.wa.gov.au/cp/dev_publications/forms/credit/2002/A4%20CP%20indiv%20app.pdfI hope this helps.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
agree with you, we do.. but Current Affair gave it a flogging recently. the media Aus wide seems to hate it so be careful in WA.
Apostle
agree with you, we do.. but Current Affair in WA gave it a flogging recently. usual bad examples.. the media Aus wide seems to hate it so be careful in WA.
Apostle
Hi,
To say wrapping is illegal in W.A. is to say that driving a car in W.A. is illegal – both are illegal when done unlicensed – this is the point of the Consumer Affairs article – their view is that wrapping is a legitimate form of credit providing and as such falls under the credit code – which in W.A. must be done with a credit providers license.
The only case they took to court was when 1 wrapper did 1 deal and they won because they were able to prove that the sale was done in a busines like manner.
As for fees – it is based on 0.1% of money lent a t the end of each financial year. Ie you only pay when you make the money.
The fact that they want you license can only be a good thing – it indicates they recognised wrapping officially.
Regards
Michael GSo seems thats the wrap on wrapping in W.A.
Thks for the info.
Regardshttp://www.owner.com.au
http://www.owner.com.au/phototour/listing_phototour.cfm?listingid=22315
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