VIC Property Law - Help with Property Dispute?

[cathj]

My mother and her brother bought two houses together. To obtain the loan and for it to be serviceable, there required to be three people on loan. My sister, my uncle and my mother.

On the title for Mother's property is:

Mum 48%
Uncle 2%
Sister 48%

On the title for my Uncle's property is:

Uncle 98%
Mum 1%
Sister1%


Unfortunately, my sister no longer wanted part in the project and therefore stopped contributing to the loan. My mother then had trouble paying my sister's portion of the repayment.

Uncle and Nana then decided they would put in the additional amount for Mum to service her loan. Mum has since decided this is no longer feasible for her now that my sister is not contributing and wants to sell her property.

Uncle then has requested that any money putting money towards the building of houses, that he personally contributed/ money contributed to the loan be paid back to him. Mum agreed to paying back any money including the additional amount Uncle and Nana contributed to the loan.

Uncle has then decided that not only does he want that money returned but wants 51% of the profits made when the house sells.

Where does property law stand on this?

 

[Rod]

Your mum needs to see a lawyer before agreeing to anything.

% are not enough to comment on. A lawyer will need to see the loan documents and agreements made between the various parties. What is clear though is that the uncle cannot just decide to change agreements because he feels like it. There has to be some legal basis for his claim and a lawyer needs to sit down and work through loan documents, agreements, emails, txts etc to work out what your mum is entitled to and what she is liable for.

 

[cathj]

Thank you Rod, appreciate it.

 

[James D. Ford - Solicitor]

Hi cathj

I can assist you with this matter.

Normally there would be a Deed of Co-ownership (prepared by a lawyer) and signed by all parties prior to entering into the purchase of the properties.

It is assumed that this was not done.

I agree with Rod's assessment.

What is clear though is that the uncle cannot just decide to change agreements because he feels like it.

You can find me via the "Find a Lawyer" search facility, or by clicking on the link in the footer to this message.

Kind regards,

 

[cathj]

Thank you James for your response.
You're correct no Deed of Co-ownership has been signed.
Can I email you directly?

 

[James D. Ford - Solicitor]

Hi cathj,

Yes you can email me directly.

James Ford, Blue Ocean Law Group - Sydney, NSW - LawTap - Find a Lawyer & Book Online Instantly

Kind regards,

 

[James D. Ford - Solicitor]

Hi cathj

​

Thanks for your email.

I will respond directly, but so that anyone else reading this thread can gain some further understanding on the general legal position - please find the relevant section of the Property Law Act 1958 (Vic) copied below:

PROPERTY LAW ACT 1958 - SECT 28A Liability of co-owner to account
PROPERTY LAW ACT 1958 - SECT 28A
Liability of co-owner to account
(1) A co-owner is liable, in respect of the receipt by him or her of more than his or her just or proportionate share according to his or her interest in the property, to account to any other co-owner of the property.

Joint Tenant, whether at law or in equity, or a tenant in common, whether at law or in equity, of any property.

Kind regards,

 

[James D. Ford - Solicitor]

If these matters cannot be resolved between the parties themselves, the action to take is to seek legal advice regarding an application to VCAT for orders to correctly
resolve the situation, and to obtain appropriate orders to ensure this can be done in an orderly fashion.

PROPERTY LAW ACT 1958 - SECT 225 Application for order for sale or division of co‑owned land or goods
PROPERTY LAW ACT 1958 - SECT 225
Application for order for sale or division of co‑owned land or goods
(1) A co-owner of land or goods may apply to VCAT for an order or orders under this Division to be made in respect of that land or those goods.

(2) An application under this section may request—

(a) the sale of the land or goods and the division of the proceeds among the co-owners; or

(b) the physical division of the land or goods among the co-owners; or

(c) a combination of the matters specified in paragraphs (a) and (b).

(3) A person who makes an application under subsection (1) must give notice of the application to the holder of a security interest over the land or goods to which the application relates.