I helped my son into his first house a couple of years ago by lending him the deposit and we made an agreement that he would pay me back. He has since bought a house with his Fiancee and now rents his house (which is about to be rezoned within 1-2 years). He is now struggling to keep both mortgages so we have agreed for me to take over the payments until the rezoning comes through.
Can I lodge a caveat on the house (with his agreement of course) for the amount of money that I have and will be contributing? And how do I go about it?
Kindest Regards
AnitaHi there
I think it best you consult with a solicitor to draw up a loan agreement between you and your son – that will give you a contractual right to lodge a Caveat – which will need to be stamped with mortgage duty (if your state has mortgage duty) – and once stamped can be lodged over your son's title.
Just be aware that if your son has an existing mortgagee – there may need to be some negotiation with that party as sometimes lodging a Caveat can be a default under mortgage documents which can cause your son problems with his financier – it may be worth having your solicitor consult with any mortgagee prior to lodging documents.
Another option may be to have all documents drawn up necessary to lodge on title if it becomes necessary –
thanks
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