The applicants sought to discharge a $160,000 mortgage held by the respondent, the applicant's stepfather, on their property.
The respondent claimed the mortgage secured an interest-free loan provided to assist the applicant in purchasing a previous property.
The applicants argued the funds were a gift and the mortgage was registered solely to protect the gift in the event of a marriage breakdown.
The court found no contemporaneous documentation of a loan, noted the respondent had previously sworn he was owed no money, and concluded the funds advanced were a gift.
The presumption of resulting trust was rebutted, the mortgage was ordered discharged, and the Notice of Sale was declared invalid.
