Helping Your Children To Buy A House: JCL Legal Expert Tips

Good morning

Assisting children to buy a home

With the cost of real estate rising, many children are unable to purchase a home without the assistance of their parents.

In my practice, unfortunately, I have come across many instances where parents have invested their superannuation to assist their child to purchase a home have been unable to satisfy the Family Court that the assistance was provided as a loan and not as a gift or in other circumstances could not prove the loan or where the child has made unfortunate financial choices other loans have been paid out ahead of the parent’s loan.

In assisting their child, a parent must be aware of the pitfalls that may befall their investment. Unfortunately, it is very necessary when partnerships and marriages do not necessarily have the longevity of previous generations; parents must take protective measures. In providing such financial help it is important to safeguard that investment to ensure that you are later able to recover those funds or safeguard them from your child’s partner or spouse in the event of a relationship breakdown. Without a properly drafted agreement, you well may be unable to recover your money six years after providing the funds. The Family Law Act 1975 now covers not only married couples but for those couples in de facto relationships greater than two years duration. With a properly drafted agreement, you are able to set out a legally binding agreement for the return of those funds. Any agreement must set out the following:

1. how and when the money must be repaid;
2. the interest rate; and
3. the purpose for which the money is being loaned.

In most cases, most parents are advancing money to enable their child to pay the deposit upon a property to obtain a loan from the bank which will be registered as a first mortgage. In such circumstances registration of a second mortgage is impractical and I recommend that a caveat be placed on the title, referring to the loan agreement between the parties or even better to an unregistered second mortgage. A caveat will protect your funds and provide your repayment after the bank has recovered its mortgage in the event of any sale of the property. Such an agreement evidences your loan in the Family Court.

As each situation is different, full knowledge of the circumstances will enable the drafting of an appropriate agreement to suit your particular circumstances. I also recommend, in the event of a sale, that provision be made to allow you to benefit from any capital gain that may accrue to the value of the property.

Wishing you a wonderful day,

Jeffrey
0419 233 670
[email protected]
Please click to see more HERE.
ps. I am available to discuss matters either in my office or by Zoom conference; and provide notary services which must be in person.

---

早上好

帮助孩子买房

随着房价的上涨，许多孩子如果没有父母的帮助就无法买房。

不幸的是，在我的经历中，我遇到过许多这样的情况：父母将退休金投资于帮助他们的孩子买房，却无法使家庭法庭确信，援助是作为贷款而不是作为礼物提供的，或者在某些情况下，不幸的是孩子已选择在偿还父母贷款之前先偿还完所有其他财政贷款。

在帮助孩子的过程中，父母必须意识到他们的投资可能遇到的陷阱。不幸的是，在伴侣关系和婚姻不像前几代人那样长久时，父母有必要采取保护措施。在提供这种经济帮助时，保障投资是很重要的，在你孩子和孩子的伴侣或配偶关系破裂时，以确保你能够收回这些资金。如果没有起草适当的协议，你很可能无法在提供资金六年后收回你的钱。1975年的《家庭法》现在不仅包括已婚夫妇，而且也包括那些事实上关系持续两年以上的夫妇。有了一份适当起草的协议，你就可以为这些资金的返还制定一份具有法律约束力的协议。任何协议必须规定以下内容：

1. 如何以及何时必须还钱；
2. 利率；以及
3. 借钱的目的。

在大多数情况下，父母都会提前提供资金，以使他们的孩子能够支付房产的定金，从而从银行获得贷款，并将其登记为首次抵押贷款。在这种情况下，登记第二抵押贷款是不切实际的，我建议在所有权上加上一个警告，参照当事人之间的贷款协议，或者更好方法是指明不做第二抵押贷款。一个警告将保护您的资金，并确保如果在出售房产事情发生时，在银行已收回其抵押贷款后，您能拿回你的资金。这样的协议可以在家庭法庭上证明你的贷款。

由于每种情况是不同的，充分了解情况将有助于起草适当的协议，以适应您的具体情况。我还建议，在出售房产的情况下，作出规定，让你受益于由于房产增值带来的增值部分。

如果您或您认识的任何人在贷款协议方面需要此类帮助，请让他们联系我，以便我可以与他们讨论他们的特殊要求。

祝您有美好的一天，

蔡福荣 Jeffrey
0419 233 670
[email protected]
请点击 此处 查看更多信息

另外，我可以在我的办公室或Zoom会议上讨论事宜；公证服务必须当面进行。

If you or anyone you know needs such assistance regarding a loan agreement in Sydney, NSW, please have them contact JCL Legal so that I can discuss their particular requirements with them.