I am helping a client who paid most of the cost of the construction of a granny flat at his daughter and son-in-law’s house, using his $50k life’s savings. He also did a lot of the cooking, cleaning, washing, folding, ironing, lawn-mowing and taxiing of children. On sale, the plan was to buy 2 unit, one for him and one for them.
However, the couple broke up, told him they were selling and kicked him out, but they rented out the granny flat for 20 months before sale.
Our client only wanted his investment back, but was only given $30k, and that was done begrudgingly.
Our view is that he is entitled to some of the sale proceeds, namely, the proportion that his contribution bears to the couple’s contributions, plus an account for the rent they received when he could have still been living there.
For all manner of disputes, Michael Paterson & Associates, but to avoid Granny flat disputes, get the agreement put down in writing.