The applicant sought a charge against the respondents' property to secure repayment of a $200,000 family loan advanced toward the purchase of a residence containing a granny flat for her use.
The court interpreted the parties' written agreement and promissory note, which expressly required the borrowers to grant reasonable security on request.
Despite the existence of an earlier gift letter to the mortgage lender and the respondents' matrimonial dispute, the court held the applicant was entitled to security over the very property acquired with her contribution.
An order charging the property in favour of the applicant for $200,000 without interest, on demand terms mirroring the 2012 agreement, was granted.
