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WA Personal Loan from Dad - Can He Charge Interest?

Discussion in 'Debt and Bankruptcy Law Forum' started by Melski, 4 August 2015.

  1. Melski

    Melski Member

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    My Dad gave me a personal loan of $90,000. I bought a property for $180,000. He therefore paid for half. I sold the house therefore he is entitled to half the proceeds. Do I need to pay him back the original $90,000? Can he charge interest on this amount?
     
  2. Tim W

    Tim W Lawyer

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    Depends on what you actually did.

    Ask yourself this - did he loan you $90,000, or
    did he buy a half share in the house?

    If he loaned you $90,000 as a simple cash loan, and
    you used that (and maybe other money) to buy a house,
    which you then sold, and pocketed some profit,
    then all you owe him is what you borrowed
    (yes, plus any interest that you agreed to at the time of the loan).

    On the other hand, if you and he went halves in a house,
    then you owe him half the proceeds of the sale.
     
    Crunch likes this.

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