Hello Could anyone please advice if my friends mother has a caveatable interest on the property where she has contributed to the purchase of the property by lending her daughter and her husband money to use as deposit towards her house as without this substantial amount she lent them they would have not been able to get a loan approved. They are now refusing to pay back the borrowed money. It was a verbal agreement between the mother and the daughter that the borrowed money will be returned once they move into the new house. The only written document they have is a Thank you card stating that " thank you for lending us the money, we will return it once we move into our house" If anyone has had any experience in dealing with situations like these please let us know how to recover the money
If it was a loan then not unless there is a legal agreement charging the property. However the mum might be able to argue a constructive trust or resulting trust, but there are presumptions against this between parents and children - rebuttable tho. Mum should seek legal advice
Recovery of the money is a separate issue - the mum could sue the daughter for breach of the loan agreement. But this has to happen within 6 years (in most states) Seek legal advice.
Sounds like an unsecured loan so no caveatable interest. I think a trust argument would be weak but would be the only option to try and improve the position from an unsecured loan.
Jeez - mum’s going to struggle to even prove the existence of a loan contract, let alone all the other stuff about caveats and enforcement.
Rather than a loan a equitable interest maybe. The card doesnt act as great evidence ... promissory estoppel? Legal advice sadly. No winners
