Queensland Vendor Finance Lawyer

Recent discussions with the Office of State Revenue ("OSR") have brought to light the fact that the Commissioner is currently reviewing the provisions of the Duties Act 2001 (Chapter 2 Part 9) in relation to their application to Instalment Contracts. The issue relates to the interpretation of certain sections of that Part.  If the proposed new interpretation of those provisions is adopted by the Commissioner then the availability of not only the First Home Concession but also the Home Concession to buyers under an Instalment Contract is at risk of not being available to them. If an Instalment Contract buyer can't get a home concession, it may mean that they may not be able to proceed with the trancsaction because of the full Transaction Duty liability. The problem can potentially be solved but this requires careful structuring and drafting of the Instalment Contract terms and conditions.

The use of the joint venture arrangement by transaction engineers established through what is commonly (although not accurately) called a Heads of Agreement) is a great way to transact with sellers BUT there are common traps that the transaction engineer should avoid. Most importantly the transaction engineer should never lose sight of the fact that the arrangement is just that a  "joint venture" between the seller and the transaction engineer. The basic notion of a joint venture is that each party brings something to the table with a view to make a financial return. There seems to be a growing trend for transaction engineers to see the arrangement as purely an exercise for them to make money out of the transaction and the seller as the party that they have "saved" from a difficult financial position. Where the transaction engineer sets the transaction up taking 100% of the cash flow profit then the transaction is at serious risk of falling over.  Despite what...