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I have been in a defacto for 6 yrs and in the first year bought

 
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  • Answered by:Sydney-Lawyer
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I have been in a defacto for 6 yrs and in the first year bought a home as tenants in common 50/50 shares through equal initial depozit and mortgage repayments, also equal contribution to all house and living expenses. 5 weeks ago my partner announced out of the blue he needs urgently $150K for a payment for his business, he started about 12 months ago and which is his source of income (previously he was on salary). He initiated a business loan but his timeframe for the money was not met, hence the other option was to ask for a top up of the current morgage. As the morgage is on both names i fill in the aplication for the top up as the second party. This top upof $150K represent entire equity in the house and includes half of my equity. I have a full time and secure job, but i'm concerned that his business may go broke and I will liable for this additonal morgage of $150K. He needs the money in 6 days, the bank will soon approve, there was no time to do a BFA, he puts pressure on me to let him acces the money. Relationship not very good either, i feel trapped. Whar can I do in such short period of time to limit my liability? I drafted a BFA but there is no time to get the whole legal process hapennign before he needs the money, can we get the FBA signed by both of us and by a public notary? Waht else should i do?

 

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State or Territory: Western Australia
What have you tried so far?: got 1 hour legal advice fromMaily court lawyer, but they need as a minimum 4 days to complete ethe agrement then a week for each of us to get legal advice. It seems there is no shorter way. My BFA is well written, as i am expoerienced in writing contraxts for a gov agency, my paretner is happy to sign it as it is, and agrred he will be solely liable for the addional loan of $150K and the respective interest and indemnifies mya gainst the payment of this lona, and it will reflected in his share of the equity, hence my share will not be affected.

Submitted: 285 days and 12 hours ago.
Category: Australia Law
Value: AU$84
Status: CLOSED

Accepted Answer

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Expert:  Sydney-Lawyer replied285 days and 11 hours ago.

Good Evening


Do not do it. There is nothing you can do to limit your liability. Even if you had a BFA it may say he has to pay you but if he does not have the money you are still liable under the mortgage.

Have you seen his books for the business to see if it is a good idea? You need to get financial advise before you do anything like this.

What you drafted is worthless. It will not hold up as a BFA in the family Court. It needs to comply with the Family Law Act and you each need to have independent advise from Solicitors who sign a certificate for each of you.

You have to sight that you agree to the $150K and the bank will hold you liable. The bank does not care about the BFA or what agreement you have. If he does not pay you have to.

This is the reality of the situation. You need to see his finances to make sure that financially the business can pay. See what the business is making or losing.

I would suggest you get advise on this from an accountant so that you know what the financial position of the business is.

It is your choice on what you wish to do but this is what I would recommend.

I hope this is of assistance. If you have any further questions please do not hesitate to contact me.

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Expert TypeSolicitor
Category: Australia Law
Pos. Feedback: 96.1 %
Accepts: 16946
Answered: 8/6/2012

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

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Customer replied285 days and 11 hours ago.

thanks.One more question. What if i gave him notice of separation and fill in consent orders indicating this loan on his side of liabilities and if he signes then perhaps I can let him have the money?

Accepted Answer

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Expert:  Sydney-Lawyer replied285 days and 11 hours ago.

Good Evening


If the loan is n the house you have to guarantee it or the bank will not give it to him.

He can be liable for the loan but if he does not pay or cannot pay the bank will chase you.

In the agreement he is liable to pay and you can then sue him to pay what the bank forces you to pay.

The bank will not give him the money on the house unless you sign or guarantee for the loan.

I hope this is of assistance. If you have any further questions please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.

Expert TypeSolicitor
Category: Australia Law
Pos. Feedback: 96.1 %
Accepts: 16946
Answered: 8/6/2012

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

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