QLD First Home Owners Grant and Home Loans Issue

[Concerned girl]

Just looking for some helpful information or for somebody to point us in the right direction..

My partner, when he was 18 years old, was convinced by his parents to go into a home loan with just his name and his dad's name to help the family so they didn't have to rent anymore. They had said, when he wanted to they will return him the first home owners grant and stamp duty that was invested and what was fair and his name be removed from the home loan.

Unfortunately he didn't realise the case is not so simple..

The spoken agreed amount was taken from his account into his mother's account (he was under the belief he was paying his share of mortgage / etc). When he finally confronted them (it's been quite a few years..) they say that he has only been paying 'rent' all these years and nothing more. And if he wants to leave they will just pay him the first home owners grant only but haven't bothered to follow through.

We've since found out that previously they have moved their other loans, cars/boats/bikes, etc onto the home loan.

He has approached them several times to have his name released and fairly paid off, but they keep delaying and making excuses why it can't happen and that he is just trying to take their money. To top things off, his mother is unemployed, his father as of a couple weeks ago (after having multiple conversations with them before hand) has just retired.

Any helpful suggestions would be much appreciated ..

 

[Sophea]

There might be a case here to argue that he was coerced into signing the mortgage by his parents. His parents clearly held a disproportionate amount of influence in the relationship and he was only 18 and trusted them and didn't know what he was getting himself into.

Under the laws of equity this may amount to unconscionable conduct or undue influence which will generally render the transaction void.

Undue influence, occurs when there is inequality in the bargaining power between the contracting parties which results in the weaker party being forced into a contract with the dominant party. It may take the form of presumed undue influence where the dominant party to the contract holds a position of trust or confidence over the weaker party such as parent and child.

Unconscionable conduct can be established if you can show that you have been taken advantage of because of some 'special disability' that you were under at the time - such as age, lack of education or inexperience. You must also show that the transaction is harsh and oppressive to you.

I would speak to a lawyer about your prospects of getting an order to have your name removed from the mortgage.