Australian Property Guardianship
Australian Property Guardianship represents a pioneering framework that facilitates the separation of land and fixtures ownership, with the right of occupancy. At the core of this model is the Guardian Right Registry, which enables the formal registration of Guardian Rights, verification of call options, and provides structured access to a marketplace for property trade and developments. This system is founded on fixed terms, transparency, and a rigorous framework that purioritizes both affordability and fairness.
The framework is anchored in established principles of Property Law, which permit property owners to establish equitable interests in their holdings, and Trust Law, which enables beneficiaries to derive benefits from property without direct title ownership. These legal mechanisms ensure that both owners and guardians possess clearly defined rights and obligations within the structure.
The Guardian Right is a trademarked concept referring specifically to the entitlements associated with the fixtures and occupancy of a property. This distinctive arrangement forms the foundation of a market designed to address two primary needs: the provision of affordable housing solutions and the facilitation of profitable property supply. The system ensures that the requirements of all participants are met in an effective and equitable manner.
Guardian Rights are categorised as depreciating assets, diminishing in value by 10% annually. In lieu of traditional rental payments, guardians remunerate the landholder for this depreciation, thereby ensuring that the cost of housing decreases progressively over time. Call options further reinforce the relationship between landholders and guardians by specifying precise option dates and fixed values for future exchanges.
The presence of two distinct markets within this framework affords society clear alternatives. The first pathway emphasises affordability, enabling guardians to acquire the house (exclusive of the land component), with its value depreciating on a monthly basis. The second pathway is intended to stimulate property supply by allowing owners to create and sell a Guardian Right over their property whilst retaining title ownership. This structure achieves mutually advantageous outcomes, promoting affordable access to housing and profitable opportunities for property owners.
learn moreThe Guardian Right market uses simple depreciation fixed at 10% p/a calculated monthly.
Guardian Right Call Options have preset dates and values, opening the door to;
- New property opportunities for first home buyers
- New property strategies for strata developers
- A runway for the return of empty properties to the market
- An opportunity to share property debt and pass on responsibility
- And offers mums and dads with investment alternatives
A One-Stop Shop for every Property Need
GUARDIAN RIGHT REGISTRY
The registry is a central platform where properties are divided into land and use rights. Guardians purchase the fixtures, responsibility, and occupancy through a transferable Guardian Right, creating two distinct ownership interests, only one of which maintains the property title.
The registry oversees the contractual agreements binding successive owners, uemploying external solicitors to handle all financial transactions. It serves as an historical ledger, recording the division of property and the succession of ownership.
Additionally, the registry serves as the Guardian Right marketplace, with all participants consenting to the stipulated terms agreement. The marketplace provides a complimentary service for the creation of listings, aquisition of interests, and the facilitation of connection between borrowers with lenders. Supplementary services include call option reminders, date and value adjustments, and a development facility for share-equity projects that amend deed dates and values upon project completion.
The registry is dedicated to resolving long standing property challenges aims to address longstanding property issues through contemporary and innovative solutions.
Explore moreHow The REGISTRY Works
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Landholders act as trustees for a Guardian beneficiary who holds an equitable interest in the property. Landholders forego rent and responsibility in favour of a lump sum payment and a Call Option. Landholders can sell a Guardian Right or a Development Right over their property, and the Terms Agreement ensures that the Right diminishes in value by 10% p/a providing fixed future prices. Landholders set the initial Call Option date after which it renews every ten-years. This initial date provides flexibility for personal or commercial reasons.
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Guardians are poperty owners and beneficiaries of the landholder. Guardian right owners are granted exclusive occupancy until the call option comes due, at which time the landholder accepts or declines this call option. if the Landholder declines, the right is extended for ten-years, and if not, the landholder will pay the preagreed value of the right on the peragreed date. This arrangement is also flexible in that Guardians can sell their right at any time for the current depreciate value, and the right provides occupancy stability which come with owner privileges and responsibilities.
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Guardianship Investors are guided away from bricks and mortar investments and invest indirectly in property by offering interest bearing loans just as a bank does. Because the Guardian Right market reduces and bricks and mortar rentals increase, this duality investment carries less risk. Lenders are guided to use straight-line reducing loans and fixed interest, loans are to be completed by the call option date, and the weekly repayment which includes the interest component, should not begin greater than the market rent value of the property.
No Hidden Clauses
We Offer:
- Registry Terms and Conditions
- Automated forms
- Marketplace Access
- An Investor Portal
Clients must agree to the Guardian Right Terms Agreement and pay a $20 annual subscription to access the registry and ensure predictable trading and investing behaviour. Automated forms, available onsite, are prefilled as needed to streamline checks and balances. The marketplace enables buying and selling property interests with an ad-listing function and integrated chat room.
The marketplace connects buyers, sellers, developers, and property owners, supporting new property strategies and tax optimization under the guardianship framework. It is important for participants to fully understand the shift towards depreciation and call options, as there are no rents in this system.
View all servicesImportance of Call Options
Call Option Calculator: Discover what your Guardian Right value will be worth 5, 10, or 20 years into the future by playing with the call option calculator before you commit to anything. Property owners set the value of the Guardian Right which is found on the rates notice explained separately as the CIV noted separately from the land value. Property Owners can change this value by using a registered split Valuation if they choose unless the landholding has dual residences then this will also need to be itemized. Once the property SETUP is completed, the option date and option value is fixed.
Development: The only exemption to this, is when a development right is used, which allows the option date and option value to be changed by mutual agreement inline with agreed projected costs. Supporting documentation which includes builder contract prices and timelines etc are to be handled and witnessed by party solicitors. This paper trail provides the developer with time to build or rebuild a fixture, and it compensates the guardian for developing the land without owning the title. When the house is built, it is the landholder who receives the build equity on the property title, but it is the Guardian who gets a secure long term ocupancy, and owns a saleable interest at the same time.
A Guardians Need: First and foremost a guardian requires security such as a long term stewardship with the right to move if he/she chooses. This flexibility ensures the Guardian is adaptable to changing circumstances. Secondly, guardians are owners who may repair and renovate the property to suit his/her needs, such as if we become incapacitated, the home can be altered to suit our change in condition. And thirdly is the cost of occupation where your deposit reduces the loan amount effectively reducing your living costs as well as building a nest egg when you sell.
Mindset challenge: A Guardian (property) Right acts in the same manner as a new car, except that the value of the Guardian Right is always known, but the value of the car is not. Second to this is that gaurdians are owners. owners do not pay rent, and this is getting mixed up with leasehold owners who do. There is no lease.
Learn MoreSelling a property share.
Register yourself into the Guardian right registry. Here, you can view a list of registered properties for sale or register your own property which you are able to list in parts. Listings include a chat line for buyers and sellers and there is a place for borrowers and lenders to do the same. Our forms enable registry changes and solicitors handle the monetary exchange. Once the set-up or sale is completed, the registry sends a Deed of Right as confirmation. When selling land under right, you must inform the solicitor about the terms agreement and Call Options, which must be included in the contract's Special Conditions. A land transfer form is required by the registry.
Exiting the system
To remove the property from the registry, the two shares of the one property must be owned in the same name for an Exit form to be activated.
When this is achieved, the prefilled Exit form can be signed and executed and the property details for the house and land will be omitted from view, but the history will still be held at the registry as per legal requirements.
Automated help
The Registry prompts owners when a Call Option comes due as a reminder that a tenancy term can end or be renewed. These prompts activate a call option Accept/decline button where the activation process can begin.
The preagreed value and date is known by both parties which removes any argument about price. This is noted on their repective Deed of Right or Guardian Right Call Option and riterated in the Terms Agreement.
Investment Portal
The investment portal service allows borrowers and lenders to meet up. The registry offers a lenders agreement with guidelines to protect borrowers through a combination of market rent and straight-line reducing loan rules to limit risk.
Using fixed interest, a 50 week year, and a maximum 500 week term guided by the current market rent as the ceiling repayment works a treat.