Promises lead to claim on real estate

ROBERT and his mother, Janice each own neighbouring properties.

Robert moves-in with his mother to look after her and decides to rent-out his property.

Robert’s work as a truck driver means that he is often away.

David has been a good friend of Robert’s for many years and after Robert has problems with his tenants, he talks to David about moving-in.

Robert says to David, “If you look after my mother when I’m not there, you can move into my property.

“All you need to do is pay the rates and other outgoings and keep the property in reasonable repair. If you do that, you can stay as long as you like.”

David is more than happy with the arrangement and soon moves-in.

While Robert is away working, David checks on Janice a couple of times a night and takes her shopping and to medical appointments.

This arrangement continues for ten years until Robert says to David, “Thank you for your help over the years. If anything happens to me, I know you will look after my mother. Don’t let her go into a nursing home. She will hate it. If you do this, you can keep the property.”

Unfortunately, Robert unexpectedly passes-away.

Robert’s will had not been updated in many years and leaves everything to his only son.

David continues to look after Janice until she passes-away a few years later.

When Robert’s son asks David to vacate the property, David commences Court action.

After a three-day hearing, the Court finds that Robert’s representations and David’s reliance on those representations, created an “equitable estoppel” and that it was unconscionable for Robert’s son to depart from the promises.

The Court rules that David was entitled to not only reside in the property for life but that he was entitled to the property outright.

Robert’s estate is ordered to pay the legal costs.

David also receives a gift of $100,000 under Janice’s will.

Email Manny Wood, Principal Solicitor at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487.

This column cannot be relied upon as legal advice.

By Manny WOOD, Solicitor