Hi all
All feedback much appreciated, it relates to my mother/father in law and their daughter and her husband.
2 4×2 homes built as duplex pair on one title, owned equal 1/4 shares as tenants in common. Each family lives in their duplex home. The land is a single title but they live as one big family so to speak with shared gardens, pool etc.
There has been a family fallout and the daughter and her family have moved out into their investment, they will not speak to inlaws, they want the houses sold so they can move overseas.
The inlaws did not want to sell, they are retired and it’s their home but have agreed to sell, an offer has come in. Do they have to accept it? The daughter is threatening “lawyers” if they don’t accept the offer.
If the daughter and husband move overseas and default on their mortgage, what happens to the property? Inlaws have no mortgage, the property worth say $950k and daughters mortgage is less than $200k.
How does a mortgagee sale work in this scenario? It’s a nightmare and the daughter refuses to speak to the parents at all…
Hi Callie,
I can’t answer your question from a legal standpoint, but it does appear to me (I’m just a layman) as still having possibilities for your parents-in-law. I’m sure our financial gurus will be able to shed more light, but for now, this is what I see for them:They have a heap of Equity in a valuable shared property. This Equity could help turn a broken egg into an omelette. They could look at arranging to “take over” their daughter’s mortgage, or re-finance completely for 50% to pay out their daughter and pay off her mortgage. I would think they could take out a 50% mortgage pretty easily, especially if they were OK with renting out the other Duplex. Again, one of the more qualified members on here will be able to give more of an idea.
Or, have your parents take a look at “strata titling” THEIR half of the property – the Bank holding the mortgage might have something to say, but it possibly could be done. Of course, this means that they would then have “someone else” buying the duplex next door – and maybe they would rather sell out than stay on the property in that situation.
The major problem I see with selling out “as is” (without strata titling), is that their market is probably limited to investors, or other families who want to try a “shared property” with their kin.
Anyway, good luck to your parents-in-law. I hope they are able to find a way through a situation that sounds pretty stressful.
Benny
You can get an order from the Court requiring a sale. If it is in QLD feel free to give me a call or PM me and I will give you a quick run down without any costs whatsover. Will also provide non-identifying replies through here for the benefit of others.
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
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That must be heartbreaking for your parents.
I doubt the daughter would leave and default on her loan. It sounds like she wants her money. Without strata titling it sounds like thy would have little option than to sell, unless they can borrow the money to buy her out. This may be possible as the rent would help but it may not cover the buyout ($460K?).
Don’t let it get to a mortgage sale. If they have to sell then do it before it gets to that. As they have no mortgare at least they’ll have decent amount to buy something else.
I hope it works out.Thank you for all replies. My inlaws have accepted an offer on the property after threats of legal action from their daughter.
Is the moral of the story never buy with family?
thanks again all :)
Is the moral of the story never buy with family?
Yes, and friends.
Very messy.
If one party stops paying the other joint borrowers will have to take up the slack or they could lose the lot.
Either joint owner could apply to the Supreme Court to appoint a trustee to take over and sell and split the proceeds. This is likely to cost $20k plus if all goes smoothly.
Good summary by Catalyst – let this be lesson for the people out there.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Glad to hear they can move on, staying there may have been a daily reminder for them of the ill-will going around. There’s more to houses than mortgages after all.
Very sorry to hear your parents had to go through that, at least you’ve been searching for answers to help as best you can.CanberraClaire | Capital Buyers Agency
http://www.capitalbuyersagency.com.au
Email Me | Phone MeExclusively for property buyers
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