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NSW Paying Out Mortgage - Ideas on Binding Financial Agreement?

Discussion in 'Property Law Forum' started by ForATime, 27 May 2016.

  1. ForATime

    ForATime Well-Known Member

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  2. James D. Ford - Solicitor

    James D. Ford - Solicitor Well-Known Member

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    Hi,

    I assume you are not in a relationship with your friend... therefore a BFA (Binding Financial Agreement - or pre-nup) is probably the wrong type of document for the proposed transaction.

    Question - is it a loan? or the purchase of an interest in the property? what do you mean by "join title"?

    If it is a loan - you will want a loan agreement setting down the terms of the loan, and a registered mortgage.over the property as security.

    If it is the purchase of an interest in the property, a Contract of Sale for a partial share in the property, would be the starting point, followed by a Co-Ownership Agreement, to determine in advance how everything is going to work - exit clauses for one co-owner to sell out their share to the other, financial contributions, what happens when maintenance is required, decisions about living in the property, or renting it out, what happens if one co-owner wants to move out, or one co-owner wants to move in.. and many other possible scenarios, etc.

    If it is a BFA, please let me know, and we can discuss further...

    Kind regards,
     
  3. ForATime

    ForATime Well-Known Member

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    We are not in relationship and it is not a loan.

    Joint title = my name included on title deed.

    Thank you for your help.
     
  4. James D. Ford - Solicitor

    James D. Ford - Solicitor Well-Known Member

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    Great, let me know if you need any assistance documenting your purchase of a share in the Property, as well as the Co-ownership Agreement.

    Kind regards,
     
  5. ForATime

    ForATime Well-Known Member

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    Would there be contract stamp duty?
     
  6. James D. Ford - Solicitor

    James D. Ford - Solicitor Well-Known Member

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    Yes, as the purchase is an investment in Property, stamp duty will be payable on the Contract.
     
  7. ForATime

    ForATime Well-Known Member

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    For the value of the property or the "buy in"?
    The existing owner would have already paid?
     
  8. James D. Ford - Solicitor

    James D. Ford - Solicitor Well-Known Member

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    For the value of the "buy-in", that is, the Contract price, which might need to be supported by an independent property valuation.
     
  9. ForATime

    ForATime Well-Known Member

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    Thanks.

    Can I move into a separate part of the dwelling and pay rent for that space to the other co-owner as well as the agreed expenses on the entire property?
     
  10. James D. Ford - Solicitor

    James D. Ford - Solicitor Well-Known Member

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    Hi,

    Yes, you can reach whatever agreement you want to regarding the income and expenses for the property. You will need to be careful, and have a Co-ownership Agreement in order to attempt to avoid disputes, and have an agreed way to handle any disagreements, should they arise.


    Kind regards,
     

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