Could the daughter evict her parents, or had she made a contractual promise that they could live in her house for life? Which case won?
Parents unable to meet loan repayments on family home
A husband and wife acquired a property in 1975.
The husband, a builder, built the family home on the property. He and his wife raised their five daughters there.
Subsequently, the husband and wife borrowed money to fund improvements to the family home.
In 2012 the husband developed a heart condition and retired from work. As a consequence, he and his wife could no longer meet their loan repayments, and the bank commenced enforcement action.
Adult daughter buys family home and pays off loan
The husband and wife came up with a plan with their daughter, for the daughter to buy the family home, enabling her parents to repay the bank.
The daughter and her parents entered into a contract for sale of land for a price of $1,050,000. The property had been valued by one bank valuation at $950,000 and another at $1,050,000.
Despite the contract for sale of land, the daughter only ever paid the parents’ outstanding mortgage debt of $840,000, not the full purchase price.
Parents continue to reside in family home after daughter moves in
After purchasing the family home, the daughter and her family moved in and lived on the top two floors. The parents moved to the ground floor.
The two living areas were self-contained and had separate access.
There was nothing in writing specifying how long this arrangement was to continue.
Relations become hostile and daughter asks parents to move out
Over time relations between the parents and their daughter’s family became hostile. The police were called to the house more than once.
The daughter gave her parents a formal legal notice asking them to vacate.
Parents commence proceedings to remain in family home for life
The parents responded by placing a caveat on the title to the house and commencing proceedings against their daughter in the NSW Supreme Court.
The parents sought an order that they could remain in occupation of part of the family home for the rest of their lives.
The daughter cross-claimed, seeking possession of the property and eviction of her parents.