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Caveat I want out

Discussion in 'Introductions' started by gabby0258, 22nd Jun, 2011.

  1. gabby0258

    gabby0258 New Member

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    Hi

    I am interested in anyone who has dealth with caveats and how to get out of them. My parents have a caveat over my home for life tennancy, and it is ruining the happiness between myself, my partner and our child.
     
  2. Terryw

    Terryw Well-Known Member

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    You would need to read the will and find out the terms of the life tenancy. Normally you would not own the house and only have a right to live there. Or you may own the house as a trustee with the right to live there. But you would probably not have the right to mortgage, sell etc which is what the caveat is there to prevent.

    You may have grounds to have the caveat removed, but this would entail an application to the Supreme Court and would be expensive.
     
  3. gabby0258

    gabby0258 New Member

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    Caveat

    Thanks Terry,

    The house was signed over as an early inheritance to my sister and myself and the caveat was for life tennancy because of this. We knocked the original house down and built a duplex to which my sister has one side and I the other. My parents decided to live with me because at this time I was single and no children, now the tide has changed and their is a partner and a child. We are looking at ways we can get out of the caveat and to find out if it extends to the other side of the duplex. We are looking at either selling my side or using it as colateral and want to know where we stand on this matter.
     
  4. Terryw

    Terryw Well-Known Member

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    Hi Gabby

    Does that mean the parents have the life interest in the property and you and your sister are joint owners of the property?

    If it is a duplex, then I assume it is just one title and the caveat would therefore be on both properties. So neither yourself nor your sister could sell or mortgage the place. BTW did you use cash to build? If you borrowed was that done with the caveat in place? (if so caveat lodger must have consented).

    It is pretty complex and surrendering a life estate is also a CGT event - though I have no idea how the value of this is calculated.
     
  5. gabby0258

    gabby0258 New Member

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    Yes my sister and I are joint owners of the property title deeds and sole owners of each side of the duplex, we mortgaged to build and this was done post the sign over of title and caveat being put in place. It was decided by parents that upon their death we would get the house anyway and they decided to make things a little easier for the family to sign over prior to this stage.
     
  6. Terryw

    Terryw Well-Known Member

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    Ok, it sounds like your parents have given you the property, but retained a life interest and are protecting this with a caveat. They would have an equitable interest in the property and would be entitled to lodge the caveat to protect their interests.

    I think you will find it very hard to remove the caveat without their permission.
     
  7. gabby0258

    gabby0258 New Member

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    Thanks for this response. Do you think that we would be able to either sell to sister or back to parents with a payout figure of what has already been paid into it or would we be able to use the place as colateral to purchase a new home and lease the exisiting duplex under caveat to parents
     
  8. Terryw

    Terryw Well-Known Member

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    You could probably only sell or mortgage the property with the caveator's consent. So it is up to your parents and your negotiating skills.