All Topics / General Property / NCCP licence for Vendor Financing
Hello again,
Can anyone tell me the process and requirements for obtaining the required licence for vendor financing.. or perhaps a link to info…
Thank you muchly
Hi again Intrigue.
I am unaware of the NCCP Act having any bearing on Vendor Finance or Option Agreements as they are usually a personal contractual arrangement between Vendor or Grantor and the Purchaser or Grantee. I have provided you a comlaw link if you wish to have a look at the Act yourself.http://www.comlaw.gov.au/Series/C2009A00134
I hope this has been of some help to you?A vendor financier would likely be a credit provider because they are selling the property on credit. Selling of an option wouldn't be credit as there is no lending involved.
Paul Dobson of this forum was running courses on the NCCP for vendor financiers.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Anthony
Hate to say anyone providing Credit advice thru a Vendor Finance arrangement certainly needs to be NCCP compliant.
This is only the case where the property is being sold under an Instalment Finance arrangement.As Terry mentioned Paul was running a NCCP course.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard.
You are 100% correct Richard. I looked at the time of that post and it was 2:40 AM!!!!!
I must be more careful in future to either pull-the-pin earlier OR hang off on any advice until a more sane time. Thanks for the correction.Not at all Anthony.
Want read some of my early AM replies lol
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Intrigue
Here is the text from our "ACL Coverage" web page:
"As one of Australia’s most experienced Vendor Finance lawyers wrote recently, 'anyone serious about vendor finance cannot be a one trick pony – that is, do lease options only.'
The new National Consumer Credit Protection Act requires anybody or any company who “in the course of a business” provides consumer credit or consumer credit advice, to hold an Australian Credit Licence (ACL) or to be a Credit Representative (CR) of an ACL holder.
- You do not need a ACL coverage if you only plan to use Lease/Options.
- If you plan to use Instalment Contracts and/or vendor financed Mortgages in your vendor finance (VF) business, you need to be an ACL holder or a CR.
- All Vendor Financiers who intend to become VF Joint Venturers, or who desire to advertise on websites or in the media need to obtain an ACL or be authorised as a CR.
In an effort to get ACL coverage for as many Vendor Financiers as possible, the Vendor Finance Institute has released the ACL Application – Assistance Pack (ACL Pack) and our authorised Credit Representative Program. Further information on these two paths to ACL coverage is available at:"
ACL Pack – http://www.vendorfinanceinstitute.com.au/home/?page_id=229
Credit Representative Program – http://www.vendorfinanceinstitute.com.au/home/?page_id=234
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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