Mermaid Beach, Queensland: The devastated Morecroft family learns they’ve never had a home legally

A Queensland family who paid $1.26 million for their dream home and lived in it for five years is devastated after learning they never legally owned the property.

Jess and Jacqueline Morecroft are seeking damages from the state government after their home in Mermaid Beach on the Gold Coast was returned to its previous owners over an allegedly fraudulent mortgage scheme.

The couple, who raised their two young daughters in the three-bedroom property, were devastated to learn it was never theirs.

In September 2018, the previous owner alleged that the house had been illegally mortgaged as security for a loan by a family member who later defaulted.

In February, the Queensland Supreme Court ruled that the mortgage was now null and void because the mortgage had been obtained through the fraud of another person.

The court ruled that the Morecrofts had no ‘legal interest’ in the property because it was never officially put in their name, only ‘equitable interest’.

The home recently sold for $2.6 million at auction on June 16, with the couple not receiving a dime and paying all bills despite purchasing in 2018.

“Within five years we will have gone from owning an entire house and having money in the bank to being robbed of absolutely everything we have worked for our entire working life,” Morecroft, 43, told the newspaper. Courier Mail.

The family, who moved into a rental in March, were told there was a caveat to the Mermaid Beach property – another party may have a claim to the home.

However, the Morecrofts say they were told six months later that the reservation had been removed and they moved in, despite the property never being put in their name.

In September 2018, the couple was sued by the previous owner who alleged that a family member had fraudulently mortgaged the property in her name without her consent.

Despite the legal proceedings, the family continued to live in the house for another five years, even converting the garage into a children’s junk room.

The rate notices and bills continued to be addressed to a different name, but the Morecrofts continued to pay them throughout the court proceedings.

In February 2023, the Supreme Court ruled that the Morecrofts owed $2,751,666.32 in damages for breach of contract and ordered the state government to pay.

The ruling said that the ‘state is liable … to compensate the buyers as they have been deprived of their equitable interest in the property … because of fraud by another person’.

However, the government proposed a conditional order requiring the couple to first seek redress from the original owner and then pay one-third of the owner’s costs and one-third of the government’s costs.

The Morecrofts say this will be a ‘devastating’ financial and personal loss from which they may never recover.

Last week, six registered bidders competed for the Mermaid Beach house.

The property sold for $1,395,000 more than what the family paid five years ago and had previously sold for $775,000 in August 2003.

The Morecrofts, who spent more than $300,000 in legal fees to fight for the house, are now seeking compensation from the state government.

They started one in May petition which has since collected more than 17,000 signatures.

“When innocent victims ended up in this terrible situation, we got compensation from the court,” the couple wrote.

“However, the Queensland Government has chosen to appeal the decision, claiming that we are not eligible for compensation as we were never the registered property owners and are not direct victims of fraud.”

The family has thanked friends, neighbours, the local community and people they had never met for their continued support during the ordeal.

“We are so humbled to know that you are all with us in our fight to seek justice.”