The last twenty years has seen a significant increase in the prices and value of residential real estate. Consequently, a situation sometimes arises whereby elderly parents have built up significant equity in their home, while their adult children are unable to purchase a house without a contribution of a significant deposit and/or having the loan guaranteed.

In such circumstances, elderly parents sometimes agree to “down size” by selling up their home and contributing the proceeds towards the joint purchase of a property with an adult child in return for the promise of a place to live for life and care as they get older.

An example of this is a “granny flat” arrangement.

When The Joint Purchase Arrangement Goes Wrong

While joint purchase arrangements are often entered into with the best of intentions, they can turn sour over time and be the subject of dispute.

Risk factors for elderly parents to be financially abused increase where:

• the agreement is not in writing,
• the parent’s name is not recorded on the title of the property,
• ongoing contributions by the parent are made in cash and/or are not recorded,
• the parent hands over control of their bank account, or
• the parent signs a Power of Attorney handing over complete control of their finances.

The first time a parent discovers there is a problem may be when they are forced to vacate the property without any recognition of their equitable interest in the property. If you find yourself in this situation, you need to immediately obtain competent legal advice on how to protect and recover your interest in the property.

Caveat

Depending on your circumstances, Ryan Murdoch O’Regan Lawyers may be able to lodge a caveat on the title of the property. The purpose of the caveat is to prevent any further dealing with the property until the dispute can be resolved. However, lodging a caveat has some risks which you need to be aware of. It may result in a very quick response from the registered owner of the property, particularly if the property is on the market for sale. For this reason, it is important that we discuss the matter with you carefully to discuss your options and to determine whether a caveat is an appropriate course of action.

Recognising Your Interest In The Property

Although you may not be recorded on the property’s title, the law may still recognise your interest in cases where there has been fraud, or where equitable rights arise from the acts of the registered owner.  Equitable rights may arise where the legal title owner gained sole ownership of the property by taking unconscientious advantage of you, by unfairly pressuring or influencing you so that your decision was not independent and voluntarily made, or else if you were put in a position where you were unable to make a worthwhile judgement as to what was in your best interest.

Other grounds may also be relevant, depending on your particular circumstances.

How We Can Help

This is a complex area of law which requires that you act quickly to preserve your interests, or else risk losing them. If you find yourself in the situation where you think you are being taken advantage of, call Ryan Murdoch O’Regan Lawyers.

We are ready to step in quickly and to assist you to protect your interests and to recover your share.

Contact Us

Get the best representation. Contact Ryan Murdoch O’Regan Lawyers on 1800 999 529, email mail@rmold.newwebsite.live, or submit an enquiry below.

We are available to meet with you at any of our local offices (Brisbane, Gold Coast, Beenleigh, Cleveland and Jimboomba) or by telephone or video-conference.

This article is for your information and interest only. It is not intended to be comprehensive, and it does not constitute and must not be relied on as legal advice. You must seek specific advice tailored to your circumstances.