lease options resi properties case studies QLD

Hi all,

I've been interested in researching lease options on resi properties. and wanted to see what the court outcomes from these type of defaulting tenants were handled. i tried to find some case studies on

http://www.sclqld.org.au/caselaw/search/index.php?keywords=call+option&court=QCAT&offset=1

searching all courts (they have option to automatically search all courts) but i only found 1 for resi property and even that wasn't a lease option that was a instalment contract.

i'm sure that QCAT must have seen heaps of these cases ever since rick otton and others starting teaching this strategy.

1. I was wondering if i was looking in the wrong spot?
2. is there an easier way to find these case studies?

Cheers, Elives

 

Do you mean wraps/vendor finance on instalment contracts?

 

its vendor finance, its lease option.

 

I'm still not clear on the format sorry - where does vendor finance come into a standard put and call?(option to buy/option to sell)

Rick Otton was wraps from memory - vendor financing someone via an instalment contract where ownership only transfers on final payment.

 

I remember it being niche popular 10 years ago but wasn't it made difficult by changes to consumer finance law? You need to be registered as a financial institution to provide credit was the change i think. There was also significant bad press around back then when they went wrong. Not sure if there were many legal cases tried though

 

lease option/put n call option is normally advertised as "rent to own" you might know it by.

you need a credit license to do instalment contracts.

 

I think you are confusing lease options with put/call options. They are totally different strategies.

Previously the use of a put and a call option at the same time was used as a strategy to lock both parties into a purchase/sale yet allow the option to be assigned so a different people settled to the one who entered the option agreement. This allowed for minimal stamp duty. But doesn't work now in NSW.

A lease option is where the owner of a property sells an option to purchase the property to someone else in conjunction to a lease on the property. Part of the rent may or may not come off the price the tenant can buy the option for.

 

i got the put % call option terminology from looking at the court case studies and dominique grubisa. i'm now guessing the court case studies were referring to what you've explained above and that dominique well i'm assuming she's talking about a lease option.

but yes you are correct i was confused about the 2.

 

Here are some option cases from my notes


Fiuggi Holdings Pty Ltd v Lamrocks Legal Pty Ltd t/as Lamrocks
Solicitors and Attorneys; Actively Zoned Pty Ltd v Lamrocks Legal Pty Ltd t/as
Lamrocks Solicitors and Attorneys [2012] NSWSC 1388

Equity - fiduciary obligations of solicitors - put
and call options entered into by law firm and client in relation to real
property to be developed by client - whether:
law firm breached fiduciary duty to client by failing to advise that client
should obtain independent legal advice and by drafting documentation wholly
favourable to law firm and related without advising client that options were of
little or no value to client - measure of damages - loss of rent - loss as a
result of forced sale - costs of audit and report - loss of capital gain -
interest and associated bank costs - discount for contingencies or vicissitudes
in relation to global financial crisis: Burger
King Corp v Hungry Jack's Pty Ltd (2001) NSWCA 187.

http://www.caselaw.nsw.gov.au/action/PJUDG?s=1000,jgmtid=161845

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Hare v Nicoll (1966) 2 QB 130 at 141 option for purchase of property must be exercised strictly in accordance with its terms

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C&P Syndicate Pty Ltd v Reddy [2013] NSWSC
643

Conveyancing – equity – construction and operation of commercial
conveyancing documents – whether plaintiff landowner, acting through second
defendant solicitor, validly exercised put option requiring first defendant
prospective purchaser to acquire land - plaintiff sued purchaser for damages
for breach of contract, and sought, if necessary, an order for specific
performance in aid of damages claim - alternatively, if option not validly
exercised, plaintiff sued solicitor for damages for professional negligence –
held: put option validly exercised – plaintiff established case against purchaser
– claim against solicitor dismissed – plaintiff entitled to award of common law
damages - order for specific performance not necessary or appropriate.

http://www.caselaw.nsw.gov.au/action/PJUDG?jgmtid=164977

==
Acton Investments (ACT) Pty
Ltd and Momac 2 Pty Ltd v Batticcotto [2014]
ACTSC 31

Contract
for sale of land - defendants entered put and call option deed (deed) with plaintiffs
who were registered proprietor of land and developer of apartments on land - plaintiffs
delivered updated contract for sale of apartment in purported compliance with deed
- contract provided for completion of sale within 10 days of receipt of
notification by developers’ lawyers to defendants of satisfaction of all conditions
precedent to completion in contract – date of completion set by agreement but defendants
failed to complete – plaintiffs served default notice - defendants served
notice of rescission - plaintiffs sued for unpaid deposit instalment and
interest - defendants claimed plaintiffs had failed to provide a contract that
complied with s11(1)(i) Civil Law (Sale
of Residential Property) Act 2003 (ACT) as required by deed - whether ss9,
10 & 11 of the Act required that seller attach to sale contract a current
copy of certificate of title for contract to be enforceable, if it was otherwise
available for inspection - required
documents – attach - forms part of - held: incorporation of
required documents was condition of contract - by failing to attach current
edition of certificate plaintiffs had breached condition and defendants were
entitled to rescind - judgment for defendants.

http://www.courts.act.gov.au/supreme/judgment/view/7909/title/acton-investments-act-pty-

==

Palermo Seafoods Pty Ltd v Lunapas Pty Ltd The NSW Supreme Court considered a range of issues in this case,
including whether there was an option to renew the lease, whether the
option to renew was exercised, whether the landlord was estopped from
denying exercise of the option, and repair and re-entry.

 

Thanks terry for the links, I was looking more for lease options for resi property for qld.

i found a few for cpi's. i would have thought there'd be heaps but i couldn't find any. tomorrow i'll have a look at NSW and see if i can find any!

 

try searching for 'rent to buy'

 

This link might help - not sure any from Qld but includes an unreported lease option case from CCCT in NSW
http://thenaysayer.net/rent-to-buy-links/

 

Thank you heaps! have been trying to find these types of cases for a week now. much appreciated!