Hello Richard.

Your plan sounds like a good one for all involved in your trust deed.

I do think that your Trustee will need to approve this and almost certainly take control of the sale of the home.

Great, thanks for the info!

R

It may not be quite as straightforward as this however richard. Equity in a house is separate from contributions avaialble from your income and selling your house would not necessarily mean that you would be discharged from your trust deed. Indeed, the trustee is obliged to gather in whatever contributions you can afford for the full three years.
It can be brought to a close early if a third party were to pay in a lump sum, but the realisation of an asset which you own is a different matter.

Hi Kevin,

My reading of Richard's post was that he is responsible for paying a fixed sum in lieu of the equity in the property. If that's the case, and a surplus is generated in excess of this through the sale of the property, could that surplus be used to cover any outstanding monthly trust deed contributions due?

Maybe, but if I were Richard I would be clarifying this and getting confirmation of the position in writing from his trustee beforehand.

It could easily be argued that his share of any profit after a sale is an "acquirendum" and should be gathered in over and above any income contributions that are available - regardless of prior discussions as to what would be required to buy out equity if the property wasn't being sold.