WA Personal Loan from Dad - Can He Charge Interest?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Melski

Member
4 August 2015
1
0
1
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?
 

Tim W

Lawyer
LawConnect (LawTap) Verified
28 April 2014
4,962
822
2,894
Sydney
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.
 
  • Like
Reactions: Crunch