Vendor Finance Association is aimed at safeguarding the interests of all parties concerned in the process of vendor financing.  It provides a forum to the providers of vendor finance to meet, discuss and to serve as a consulting source for the government for legislation changes. When people have difficulty in all the requirements of obtaining traditional financing they look for other options offered by private operators.  This is the same in the current Australian real estate scenario where aspiring home buyers look for alternative methods of financing their home ownership. Private real estate finance providers work out innovative solutions for the home buyers who otherwise would not qualify for a bank loan or a conventional mortgage.  Due to lack of buying interest, the home sellers find it difficult to sell their properties.  The seller or vendor offers some incentive to the buyer by providing the required finance towards purchase of the property under a special agreement with a set of terms and conditions.  The process of vendors providing the financing is known as vendor finance or seller finance.

When people run out of options and the only viable way to obtain funds to home ownership for them is through vendor financing. When you do not have the credit history, a salaried job or enough savings to meet the deposit requirements vendor financing is the solution.  This enables the home buyer to stop paying dead rent and own the house at a future date if he is ready to meet the higher interest rates and payments.  There are many kinds of vendor financing and the terms differ with each other finance.  The only way to make sure of safeguarding your interests is to find an experienced lawyer who can guide you with understanding the terms of the agreements and to assist you with the legal aspects of the process of obtaining home ownership through vendor financing.

Vendor finance providers offer personalized terms and flexible options for repayments to help the potential home buyers to buy homes. When you decide to use vendor financing you must check if the vendor is a member of the Vendor Finance Association. The Vendor Finance Association was established in the year 2001 registering with the Department of Fair Trading in Australia.

The objectives of the association are:

• Promoting as well as safeguarding the interests of vendor financing participants
• Providing information that are balanced and accurate regarding vendor financing to the public, the media and the government
• Developing a code of ethics in conjunction with the Department of Fair Trading for the association members to be followed in providing vendor financing
• For lobbying with the government and all other statutory authorities regarding vendor financing legislation and to become a recognized source for consultation prior to legislation changes
• To keep the members up to date on changes, trends and news articles through the association’s web site
• Organizing meetings and providing networking opportunities and discussion forums for our members

In Australia, the members of Vendor Finance Association follow the code of ethics in the process of helping people who do not have access to traditional financing for home ownership.