Family fight for compo after being told home they bought at auction wasn’t theirs

A Queensland family is fighting for compensation after the home they won at an auction and lived in for years sold last week - but they won’t see a cent of it.

‘Powerless’: The Morecrofts were told they never legally owned the home, despite having the winning bid for it at auction in 2018. Picture: Supplied

A five-year nightmare for a Mermaid Beach couple ended in heartbreak last week as the home they believed was theirs, but never legally was, sold at auction for $2,660,000.

Jess Morecroft, 43, and Jacqueline Morecroft, 47 are now fighting for compensation after bidding $1,265,000 on the home in March 2018 and after living there for five years, were forced to find a rental.

The couple will see none of the money from the proceeds of the auction and have not received any compensation to this date, despite the Supreme Court of Queensland earlier this year ruling the couple was owed $2,751,666.32.

The family were excited for their new start after winning the auction in 2018. Picture: Supplied

After placing the winning bid on 30 Francis Street in 2018 the couple understood the property had a caveat on it, which effectively served as a warning on the title that someone else may have an interest in the property.

“We had to hang around for six months, and then we would be released from the contract if the caveat was not removed,” Mr Morecroft said.

“We heard from the solicitor we were good to go and the caveat was removed, we were good to proceed.

“We moved in and thought thank god, that was stressful.”

Shortly after moving in the couple said their names weren’t on rate notices, however they continued to pay bills associated with the house.

In September 2018 the couple discovered the house wasn’t actually in their name at all when they were served with court appearance papers.

“We got sued by the previous owner,” Mr Morecroft said.

“We found out the previous owner was alleging fraud and said her son mortgaged her property in her name without her consent.

The Morecroft family lived in the property for five years, believing it was theirs. Picture: Supplied

“As a defendant you are powerless to push things along.

“You can’t plan anything really. We had paid all this money, but we never had it in our name, so we couldn’t use it as security for anything.”

Despite the legal proceedings, the couple believed they would keep their family home once the case was settled.

“We never thought in those early years we would be kicked out of the house,” Mrs Morecroft said.

“We paid the rates, that was our home. We were living there, we never thought that we’d lose it.”

The couple converted their garage into a rumpus room during the first few months of living in the home.

“We had these dreams,” Mr Morecroft said.

“We put in all these new LED lights and ceilings fans in the rooms. We wanted to really make it our own and engaged with a designer as well.”

Exterior pictures of the home which was auctioned off last week. Picture: realestate.com.au

According to Subdivision C, section 188 of the Queensland Land Title Act 1994, if the claimant is deprived of an interest in a lot because of the fraud of another person the claimant is entitled to compensation from the State for the loss or damage.

In February this year Judge Crowley at the Supreme Court of Queensland ruled as the mortgage was procured by the fraud of another person the mortgage is now null and void.

Judgment for the Eighth and Ninth Defendants against the First to Sixth Defendants in the sum of $2,751,666.32 for damages for breach of contract,” the judgment read, with Mr Morecroft and Mrs Morecroft listed as the Eighth and Ninth Defendants and the lenders that sold them the property listed as the First to Sixth Defendants.

The home is located close to the beach. Picture: realestate.com.au

The judgement also ordered the State was to pay compensation to Mr and Mrs Morecroft in the amount of $2,700,000.00.

After the judgment was delivered the state proposed a contingent order, requiring the couple to first seek recovery for damages against the First to Sixth Defendants before the state was required to pay compensation.

The couple were also directed to pay one-third of the original owner’s costs as well as one-third of the state government’s costs.

The Morecroft family are now fighting for compensation. Picture: Supplied

“For Jackie and I, this has been a crippling period in our lives. We believed as innocent purchasers we would be protected, and the government would stand up for us and support us,” Mr Morecroft said.

“In five years, we will have gone from owning a house outright and having money in the bank to being robbed of absolutely everything we have worked for our entire working lives.

“It will be a devastating loss which will be hard to recover from, financially, mentally, ever.”

“Once we knew we had to move out we were running through all the motions - the shock, the disbelief and the desperation knowing it’s a tight rental market,” Mrs Morecroft said.

Exterior of the Mermaid Beach home. Picture: realestate.com.au

“I just felt like I had to get out. You’re being crushed by everything. You don’t want the worry of not knowing where you were going to live,” Mr Morecroft said.

Friends and neighbours helped the family move out in March this year.

“They were all in a shared state of disbelief,” Mr Morecroft said.

“For our youngest that’s been the house she’s lived most of her life in.”

“We’ve had all these markings on the wall with the heights and when we were packing … that’s when you get reflective and say, ‘man, look at this’.

“You’ve got a very visual reminder telling you this was your life in this house. That was the most upsetting part.”

A family gathering at the Mermaid Beach home. Picture: Supplied

Three months on from the move, the couple still can’t bring themselves to drive down the street.

A spokeswoman from Ray White Burleigh Heads confirmed the property sold at auction on Friday, where there were six registered bidders.

It was auctioned by those who were the registered owners in 2018, who had alleged fraud, saying her son mortgaged her property in her name without her consent.

The winning bid was $1,395,000 more than what the Morecroft family paid in 2018.

Mr Morecroft said news of the auction was upsetting.

“It’s hard to know how to feel about it, though we wish the new owners all the best,” he said.

“The house is well and truly gone now.”

Mr Morecroft has started a petition urging the government to give the family compensation and have already received more than 17,000 signatures.

“Please help us urge this government to show some compassion and abide by the order of the Supreme Court for compensation, to free us to move on with our lives,” the petition read.

The Queensland Government was contacted for comment.