Mortgage Broker

24 | fall 2018 cmba-achc.ca CMB MAGAZINE courts have interpreted that provision to be a presumption capable of being set aside where any of the following apply: n e person with the registered interest gave no value for it. n e parties made an agreement contrary to what is registered on title. n e underlying equitable interests are different than the interests registered on title (simply put – fairness dictates otherwise). Having no documentation confirming the intentions and expectation of the parties, the court decided the case on the basis of which party was more believable. It decided in favour of the mother, finding that the daughter's evidence was not believable. It dealt with the above three bulleted criteria in essentially the following way: e daughter had given value for the transfer. Co-signing the mortgage and pledging her credit exposed her to risk. She was jointly and severally responsible for the entire amount due under the mortgage. Without the daughter's involvement, the mother could not have purchased the home. Considering the entire evidence, it was not the intention of either party at the time of the transaction that the daughter acquire an interest in the property. e daughter was giving her mother a gi, as she had done in helping at the hookah shop and providing interest-free loans. It was a clear understanding that this was the mother's purchase and she would be solely responsible for all matters relating to the home, including all mortgage payments. e mother had made all the mortgage payments, paid the property taxes, paid all maintenance costs and paid $100,000 for renovations. e mother has been unjustly enriched by having owned the home in an increasing market. is was possible only with the help of the daughter giving the mother use of her creditworthiness. It would be unfair for the daughter to not be rewarded for the services provided and the risk undertaken. e court awarded the daughter a 10 per cent interest in the property. As offered up by the mother, the court ordered the home to be sold and the proceeds divided 90 per cent to the mother and 10 per cent to the daughter. mortgage renewal document for both herself and her daughter. e mother admitted this at trial, realized it was wrong, and expressed remorse. e daughter became aware of the forgery and threatened to go to the police. She claimed she was not able to qualify for her own mortgage because of being a signatory for the debt with the mother. She claimed to have lost her entitlement to the first-time homebuyer benefits because of having been on title with the mother. e mother indicated to her daughter that she would cover any such losses. e daughter demanded that her mother sell the property and pay her one half of the proceeds. If the mother did this, the daughter was willing to forego $80,000 of salary she was claiming for having worked at the hookah shop. e home by the time of the dispute had increased in value considerably. ere was little doubt there was considerably more equity in the property than needed to pay out the existing mortgage. ere was no agreement setting out the intentions and expectations of the parties in having the daughter sign the mortgage and be registered on title. Among the mother's assertions were that: n the daughter was facilitating only the financing; n she did not understand there to be any ownership implications arising from the daughter's assistance; and n the daughter did not indicate, until aer the issues started arising, that she thought she had any interest in the home. Among the daughter's assertions were that: n she was an integral part of the decision to locate and purchase the home; n she and her mother discussed that she would be entitled to 50% of the house in exchange for working for free at the family business and providing loans to her mother; and n she had offered to make mortgage payments, but her mother said that wasn't necessary while her mother owed her money under the outstanding loan. decision e B.C. Land Title Act states that a person registered on title as having an interest in the title has that interest in the title. e legalease

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