20 October 2017

Looking after mum

Sale, Purchase, Mortgage, Lease
Federal

Asked

I have a client who is purchasing property with his wife. The property has a granny flat. The mother of one of the purchasers is ‘gifting’ money towards the purchase price in return for occupancy in the granny flat until her death, which may be many years away. The parties want to protect the mother and the money invested if something goes wrong in the future. My client says the mother will not have an interest on title. What is the best way to treat this matter? 

Answered

Thank you for the question.

In our Sale of Real Property guide you will find a Granny Flat Agreement which can be amended to suit the circumstances. It is drafted with a view to creating and maintaining a granny flat interest which will protect the mother and which will be recognised by the Department of Human Services and therefore not prejudice pension entitlements.

Regards

Mentor