Vendor Finance Installment Contracts . This is a standard QLD Contract for the Sale of Land, with 3 additional features, i.e. a 30 year delayed settlement that can be completed at anytime prior to the end of the term, and an Installment payment schedule that allows a buyer to pay down, or partially down, the purchase price before the contract completes with interest, and permission to move in under license, while the contract runs.

So when the buyer is in a position to "refinance" it is actually the completion of a sales contract so it will require a conveyance.

A contract is considered an Installment Contract when the Buyer pays the purchase price of a property in increments over time to the Seller and does not obtain a transfer of title from the Seller until the last payment is made, a drastically different situation than the usual land sale contract. A contract is also deemed an Installment contract when the Buyer is obligated to pay more than ten per cent of the purchase price without receiving the title. Other components of Installment contracts include:

1. Seller is prohibited from selling the land

2. Buyer may lodge a caveat against the land

3. Buyer may demand a conveyance of the land from the Seller once the Buyer has paid a third of the purchase price. Seller may also demand a mortgage back for the remaining monies due, which would transfer the title to Buyer at this point.

4. Seller may also request a conveyance of the land from the Buyer, but the Seller may be obligated to pay an advance for the transfer fees, which would be added to the purchase price and paid back by the Buyer over time.

Installment Contracts may cause issues when the Buyer or Seller defaults or when the contract does not clearly state the terms of many possible circumstances which may include defaults, stamp duty, consent to mortgages, interest charges, bankruptcy of the Seller, negative search results and equitable charges.

As the years passed and the banks realised that profits could be made by lending money to Australians for the purchase of their homes people began to turn to the banks for their finance. The old ways of purchasing property were superseded………………..

It is important for the Buyer to clearly state all possible circumstances in the contract and also to lodge a caveat on the property which would not allow the Seller to do anything with the property without the Buyer’s knowledge or consent.