Hello, I am 69 yrs Old, I was very fortunate that after my mother pased I received a inheritance, at the time I was renting and getting nowhere. I purchased a property and paid cash for it, while in the process I thought that I would put my Two sons name on the title, as I know that one day it will be There,s. The problem now is One of my sons is talking about using the property as Equity to buy a home / car, How cann I stop this. He or should I say they, his wife have borrowed monies a number of times and never repaid it. This may be a hard sell to my son and his wife but they have to learn, nothing comes easy. Iwas thinking of putting a caveat on the property to stop this happening, is that the way to go in this matter. I understand this may ruffle some feathers but I amm prepared for that. Scruffy
WA Protecting my property
- Thread starter Scruffy
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Hi Scruffy, much of this depends on what was agreed (verbally only I assume?) between you and your sons when title was transferred to them. You may well have an equitable interest that allows you to lodge a caveat and you probably should lodge a caveat to protect your interest. You need to be very careful lodging a caveat if you do not have what is called an equitable interest. The other issue, that of whether a caveat will give you any protection against lodgement of a mortgage, may depend on what state you are in. Hope that helps. There is some risk for you there if a mortgage is registered and the loans are not repaid and the bank then goes to enforce its rights under the mortgage, such as the power of sale and or entering into possession.
Thank you for your reply, may i clarify a couple of points.
There are three names on the title of my home, my two sons and myself, I asked my boys to go and sign there names when I was purchasing the property, so I presume the property is three equal shares. May I say you are very correct that i do have concerns in regard to one of my sons, and of course if he does try to take a loan out ( My home as calateral ) that he may not be able to repay the debt. I believe very clearly that he would approach me first in regard to using my home as equity, they are good boys, no drugs, never been in trouble with the law. This measure i am taking is to make him understand the values in life, by the way my boys, (Twins are 36yrs old).
Thank you Great Service.
Regards
Scruffy.
There are three names on the title of my home, my two sons and myself, I asked my boys to go and sign there names when I was purchasing the property, so I presume the property is three equal shares. May I say you are very correct that i do have concerns in regard to one of my sons, and of course if he does try to take a loan out ( My home as calateral ) that he may not be able to repay the debt. I believe very clearly that he would approach me first in regard to using my home as equity, they are good boys, no drugs, never been in trouble with the law. This measure i am taking is to make him understand the values in life, by the way my boys, (Twins are 36yrs old).
Thank you Great Service.
Regards
Scruffy.
Hi Scruffy ... No loans expert but I *believe* that the lender would need the agreement of all title holders to use your place as actual collateral... Hopefully your boy would understand that at 69, it's just not a financial risk you can afford to take.
It depends on the title holding, assuming WA is like most other states - it usually aligns fairly closely with Queensland law traditionally, and the following is correct for Queensland.
If the property is held jointly (i.e. as joint tenants), then all owners will need to agree to placing a mortgage on the property. If it is held as tenants in common, then any one owner can individually mortgage their share. If there is a partial joint tenancy (known as joint tenants ‘inter se’), then all relevant joints tenants for the part to be mortgaged must agree. To put it simply: joint tenants can’t be split, tenants in common can, when it comes to mortgages.
It is unusual, and most lenders probably wouldn’t do it. But I have seen it recently done in a matrimonial situation leading into divorce. The husband found out when he tried to sell an investment property (with consent from the wife) that they both held as tenants in common, that she had granted a mortgage over her half share which had been registered. This was only picked up when the real estate agent did a title search to confirm particulars for the contract.
If the property is held jointly (i.e. as joint tenants), then all owners will need to agree to placing a mortgage on the property. If it is held as tenants in common, then any one owner can individually mortgage their share. If there is a partial joint tenancy (known as joint tenants ‘inter se’), then all relevant joints tenants for the part to be mortgaged must agree. To put it simply: joint tenants can’t be split, tenants in common can, when it comes to mortgages.
It is unusual, and most lenders probably wouldn’t do it. But I have seen it recently done in a matrimonial situation leading into divorce. The husband found out when he tried to sell an investment property (with consent from the wife) that they both held as tenants in common, that she had granted a mortgage over her half share which had been registered. This was only picked up when the real estate agent did a title search to confirm particulars for the contract.
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