The Registry Rules establish the framework for how Guardian Rights, Landholder Shares, Call Options, depreciation, maintenance responsibilities, and occupancy limits operate within the registry system. These rules underpin every agreement to guarantee consistency across all trades, listings, and housing projects. Anyone entering into a Guardian Right arrangement is bound by these terms, which serve as the legal foundation for their rights and obligations.
Property interests are managed through a trustee-beneficiary relationship in accordance with the terms of the trust, specifically outlined in the "Guardian Right Terms Agreement." These terms are transferable between owners and set the applicable conditions for all parties registering in the Guardian Right Registry.
The Guardian Right Terms Agreement divides a single property into two or more distinct shares, effectively separating ownership of the land from the fixtures, regardless of whether those fixtures already exist or are yet to be constructed. This separation assigns exclusive occupancy rights, determines depreciation values, outlines respective rights and responsibilities, establishes the rules for call options, and specifies the allocation of expenses.
The Guardian Right is acknowledged as an equitable interest in the appurtenances of the property. It grants an individual the right to benefit from or profit from the property without holding legal title. Under the terms agreement, the guardian is given ownership of the fixtures—encompassing specific occupancy rights for a defined period—while the landholder retains the property title.
The terms provide detailed guidance regarding financial contributions, dispute resolution, legal compliance, and the conditions for termination of both the equitable interest and landholding. Titleholders remain protected by existing laws governing Torrens title, ensuring there are no title issues.
Guardians are unable to record an equitable interest directly on a Torrens title and, therefore, must rely on a paper trail and binding agreements, which are managed by the trust deed. While the Guardian Right creates an equitable interest in the fixtures—considered real property—in the absence of associated land, this interest is classified as personal property and thus falls under consumer protection laws.
The security, which consists of ownership, occupancy, and responsibility for the property’s fixtures, is a personal matter between the landholder and the guardian, rather than between the ward and the state. The Guardian Right does have a saleable value, can be transferred between parties, and does not interfere with the duties of the landholder. As a result, it is considered bankable.
The Guardian Right represents an equitable interest in real property, specifically limited to the fixtures associated with the property. These fixtures include structures such as the house, sheds, fencing, pool, driveway, and similar improvements on the land.
The Guardian Right is classified as a depreciating asset. Its value diminishes at a rate of 10% per annum, with depreciation calculated on a monthly basis. The reduction in value is always measured from the original established setup value of the Guardian Right.
The Guardian Right is subject to landholder Call Options. These options allow the landholder to purchase the equitable interest at specified times, with the purchase price determined according to the depreciation schedule outlined above.
To this agreement, the Guardian Right equitable interest is noted as: Share B.
Specific Shares.The shares of each property under this agreement are as follows.
Share B. Guardian must occupy the property and cannot use the property as a rental.
Share B. is a depreciating asset which reduces by 10% per annum calculated monthly on the 1st day of each month. This creates a fixed market value for the life of the ‘Guardian Right’ to be used at every exchange.
Share B. Occupancy is restricted via Call Options which provide the dates when Share A. has the right to purchase Share B for the price determined by the depreciation schedule.
Share B. has a 100% right to occupy the property unless there is a dual occupancy.
Share B can rent rooms and use the premises for work purposes.
If the property has dual occupancy, a condition of a second tenancy under the term’s agreement is that Share A must provide the Guardian with a written memorandum in relation to privacy and unimpeded access to their place of residence.
Any tenant not included in a Guardian Right agreement, for the purposes of sewer, power, or water consumption must not impede the Guardian, under which all costs, revenues and responsibilities are now borne by the trustee, landholder Share A.
Dwellings not included in this Agreement.
Any dwelling not included in this agreement but attached to the property: such as cabins and fixed tiny homes, are the property of Share A.
Details of the occupancy and access, (pictures and tenancy agreement) and the responsibilities of these tenants for rubbish, water, sewer, power etc must also be recorded and honoured.
Share B has no right to refuse this occupancy. (what was in place, stays in place).
Share A must include all of this in a memorandum and provide this memorandum to Share B prior to the Share B purchase.
Share A. is responsible for occupants’ actions and behaviours in dwellings not included in a purchase agreement on the property and reserves the right to change occupants using the same terms and conditions under the memorandum.
Share A. is responsible for 100% of the land rates, taxes, and lien expenses related to the landholding specifically.
Share B. is responsible for 100% of the water rates and the repairs and maintenance expenses relating to the house, shedding, pool, driveway, and fencing, and any lien relating to the Right.
For dual occupancy properties, services that are shared between occupancies are borne by Share A, who may charge the service costs equally between dwellings.
A ‘Guardian Right’ value originally stems from the CIV (capital improved value) of the rates notice and can include a valuer’s valuation to increase this value if required.
The CIV on the rates notice covers the appurtenances, the (depreciable fixtures) upon the land.
Once this value is registered at the Guardian Right Registry, the guardians Deed of Right automatically decreases in value by 10% per annum calculated monthly on the 1st day of each month.
This telegraphs a fixed value and sale price for every future Guardian Right exchange. Land prices do not follow this process. Landholders can charge what they want.
It is the Duty of all Guardians to maintain and or improve the habitability of the property.
Share A. (the land) is registered at the Land Titles Office, forming the trustee over Share B. whose equitable interest is registered at the Guardian Right Registry.
A confirmation Deed of Right is provided for Share B.s records.
Each time a Guardian Right is exchanged, a new Deed in the form of a Deed of Right will be issued to the new owner and the previous deed to the same property becomes null and void.
A Deed of Right is also the receipt of the Share B. agreement from the Guardian Right Registry.
A call option is a financial agreement that gives the landholder the right, but not the obligation, to purchase the Guardian Right at a predetermined price, on a particular date. The Guardian is obligated to sell the asset at the predetermined price if the landholder chooses to exercise the option.
Share A. holds Call Options over Share B.
Share A. sets the first option date, after which the option date renews itself in 10x10x10 year intervals.
Once the first option date is recorded it is fixed into the system over both shares, and the depreciation schedule over the Guardian Right creates the predetermined price.
Share A. must notify and provide Share B. with no less than 3 months’ notice that a Call Option will be exercised.
Share A. will provide the call option agreement prefilled with the names and value of the sale, to the share B.solicitor.
Both shareholders have the right to sell their share at any time.
Share A. can offer the landholder share to Share B. prior to listing it on the open market.
Share B. would have the first Right of Refusal.
Share A. may begin the process to terminate this agreement by firstly purchasing Share B. and completing the exit form process to make it official.
Share B. may terminate this agreement by buying Share A. and then complete the exit process.
Until the exit process is completed, this agreement is binding.
The Guardian is to provide the incumbent Guardian with ‘vacant possession’.
Vacant possession should include mown lawns and a home in good working order.
Possessions left at the premises will be deemed as gifted to the new owner.
Share A. may sell this property at any time, and provide the ‘Right of First Refusal’ to Share B.
Share A. has the right to activate a Call Option through the registry.
The Call Option must be activated no less than 3 months before the Option date expiry.
If the Call Option is not taken, the Guardian will be provided with a 10-year extension.
In the case of a development on Vacant land, Share A, has the right to refuse the type of dwelling that is to be built.
Share A. does not warrant the condition or habitability of the house.
Share B. cannot remove or relocate fixtures from this site address, and the landholder’s options to purchase the property share cannot be removed.
Share B has the right to sell or pass in Will, the Guardian Right at any time for the prescribed price determined the depreciation schedule.
The Guardian must reside at the property, and has the right to rent rooms, plant veges, have pets and make additions subject to council regulations.
A Guardian cannot vacate the property and use it as a rental.
A Guardian may not or demolish any fixtures from the property except during repair or through council approved additional works.
Share B. is responsible for 100% of the water rates.
Share B. is responsible for the upkeep of the vegetation and trees, and any damage relating to falling or protruding limbs from the property in an event.
Should the property be damaged by an act of God, (fire, flood, quake, hail, or accident) and insurance is engaged, repairs will be seen to be taking place.
Share B. is bound by a Call Option, and If the option is not taken, the Guardian may continue to reside at the property until terminated by way of a Sale.
If the Call Option is taken, no less than 3 months’ notice must be given to the registry under written and signed instruction who will notify the guardian share B of the landholder decision.
The date and value of Share B at the time of the Call Option being executed is printed on the guardians Deed of Right, and the landholders GR Call Option agreement.
Share B. warrants that the condition and habitability of the house is in as good or in better condition than when the Guardian took it over.
A Guardian will pass the sold property with Vacant Possession.
The Call to execute the Option must be known no less than 3-months prior to the Option date being exercised. The landholder must activate the Call Option through the registry.
If the Call Option was not activated prior to the 3-months’ notice cut-off, then the sale to Shareholder A. will not proceed.
If the call option is not activated, the Guardian’s time to occupy will be granted a 10-year extension.
Old mortgages over property include Share A land and Share B fixtures, so it is the responsibility of the landholder to pay down the mortgage from the sale of Share B and inform the lender of the equitable interest now in place over the landholding.
Share B. has the right to opt for a caveat to protect his share if required.
Share B. has the right to finance.
Share B. cannot include the landholding belonging to Share A. when obtaining finance, and to do so is to commit fraud.
Party A. shall not be held legally responsible for Party B.
Party B. shall not be held legally responsible for Party A.
Although a Guardian Right covers real property under the act, the finance made available shall be personal, based on the reducing value of the use of the property.
To limit risk, financiers are required to use straight-line reducing loans, a fixed full-term interest rate, a 50-week year, and a 10-year maximum term.
Financiers should also align their repayments to market rent and work out the interest rate on the occupancy term based on the closest call option date.
Guardian Right financiers should also include a provision to enable the Guardian to pass the debt with the property use (if required) due to the rest of the terms staying unchanged.
On the sale of Share B. all debts must be settled or transferred.
A ‘Development Right’ is permitted over vacant land for the purposes of a Guardian developing the land subject to council conditions.
Share A. has the final say as to what type of dwelling can be built on the land and where.
A Development Right is used instead of a Guardian Right which still leads to Guardianship and provides a Deed of Right on completion.
The total cost of the building, including permits and approvals shall replace the $5000.00 value of the ‘Development Right’ with this ‘new total cost value’ and the registry will be reset. This means if the total cost was 300k which included the 5K value, then the 300k will become the new value of the Guardian Right.
The Call Option date may be changed by mutual agreement on a Development Right only.
Development Right.
For building works on vacant land or the rebuilding of Derelict structures, the signing of a Development Right over the property should be used instead of a Guardian Right for the protection of both parties to include a scope of works, contract price, and completion date of the project being undertaken.
The development right is valid for 1 year only, so the project must have commenced and been completed within this timeframe.
The new value of the Guardian Right shall be determined by the contract price of the project and its date shall begin on the projected completion date.
The Development Right determines what will be built and where, with the cost of works determining the Guardian Right value upon completion.
If the building works have commenced and are incomplete, an extension of 6 months only will be granted after which the Development is voided, and the developer loses all rights and financial contributions.
The penalty for not completing the project within the allotted 1 year shall be found in the new Call Option date of the Deed of Right. The Call Option will be dated on the purchase date of the Development Right rather than the developments Completion date.
A Guardian Right or Development Right is permitted over existing derelict dwellings.
The Development Right shall be sold for $5000.00, and the cost to repair and renovate shall be borne by the Guardian or Developer of the property.
With derelict dwellings, if power, water, and septic are required to complete the rebuild, a scope of works, cost estimate and completion date should be provided so the total cost of the project will have the correct value of the right and time that the value will be set to.
Call Options can be negotiated if a Development Right is used.
For houses in flood zones that have become uninhabitable, a Guardian Right or Development Right can be used.
Being uninsurable, the cost of this property share shall stem from the CIV of the rates notice, or it can be sold for $5000.00.
Under a Guardian Right the cost to make them habitable again will be calculated against the Call Option minimum term of residence.
Under a Development Right, a scope of works, cost estimate and completion date will be required, and a new value will be shown on the Deed.
Use the Call Option Calculator to see which one works best for you.
Share A. and Share B. are clearly defined with the paper trail and the Deed of Right to prove the specific ownership and responsibilities.
Should a Guardian be under financial stress, the Guardian can at any time sell the Right with vacant possession under the Terms Agreement.
Guardian debt and the value of the property are designed to align, allowing the debt of the property share to be passed to an incumbent Guardian under investor terms if agreed.
Should the Guardian act unlawfully and the property is damaged, not maintained or not repaired in a timely fashion (3-months only), then the guardianship can be sold by the Registry under terms and without prejudice, and a Sherriff can be used to evict the previous owner. See Fair and Equitable Future Value clause.
Should the property be damaged by an act of God, (fire, flood, quake, hail, or accident) and insurance is engaged, repairs will be seen to be taking place. No further changes.
Should the Guardian vacate his post and the property is rented, we have a ‘tenancy dispute’.
Tenants renting a Guardian property where a Guardian has vacated, can apply to the Guardian Right Registry to become the new owners. see share B restrictions.
The Guardian Right Registry is provided with permissions to enforce the terms and conditions of the agreement, can exchange one Guardian for another if necessary.
The Guardian Right Registry uses this agreement as guidelines rather than rules, some which remain fixed, and others which have leeway to create trust.
Trust is cultured and provides room to move when laws are rigid or grind up against others where there can be no true outcomes.
With State and Territory laws changing from state to state, a provision to act as tenants-in-common can be included which includes a $1 p/a fixed remuneration for the 10x10x10 year term. This is not included in this agreement but could be.
This Guardian Right Terms Agreement may be up-dated from time to time.
# of note - Empowerus Australia Pty Ltd is not a financial institution