Hypothetical by Manny Wood published in the Coffs Coast News Of The Area on 25 September 2020.
Robert owns a two-storey home, worth $1 million but it is subject to a mortgage of $850,000.
Robert’s daughter, Wendy wants to move into the property and they come to an arrangement whereby the property is transferred into Wendy’s name on the basis that she pays-out the mortgage.
They retain a conveyancer and after Wendy obtains finance approval, the property is transferred. Robert does not obtain legal advice.
Wendy, her partner and her two young children move into the top storey of the property and Robert occupies the lower level.
Unfortunately, difficulties emerge between the parties. Wendy discovers that the rear deck is not council approved, Robert and Wendy’s partner have an argument regarding the pruning of the trees and Robert has a run-in with the neighbour.
Wendy asks Robert to leave and after seeing a solicitor, serves Robert with a notice to vacate.
Robert refuses to leave, arguing that Wendy agreed to allow him to stay in the property for the rest of his life, as part of the arrangement.
Evidence is given in the Supreme Court and the Judge finds that there is no evidence that any such agreement existed, much less a binding contract or a promise that was made by Wendy.
The Court ultimately orders Robert to vacate the property.
However, the Court is of the view that Robert is entitled to compensation because Wendy paid less than the market value of the property. The Court notes that Robert did not pay rent during his occupation of the property and that he did not contribute towards the rates and other outgoings.
The Court orders Wendy to pay Robert $150,000 and unfortunately, the property is placed on the market.
If YOU would like a particular issue addressed please email Manny at manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
