Mermaid Beach, Queensland: Morecroft family devastated are learning they never legally owned home

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

Jess and Jacqueline Morecroft are demanding compensation from the state government after their home in Mermaid Beach on the Gold Coast was returned to its previous owners due to an alleged fraudulent mortgage scheme. 

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

In September 2018, the previous owner alleged the home had been unlawfully mortgaged as security for a loan by a relative who later defaulted.  

In February, the Supreme Court of Queensland ruled that because the mortgage was procured by the fraud of another person it was now null and void. 

The court found the Morecrofts had no ‘legal interest’ in the property because it had never been officially transferred into their names, only ‘equitable interest’. 

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

‘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,’ Mr Morecroft, 43, told the Courier Mail. 

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

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

In September 2018, the couple were sued by the previous owner who alleged a relative had fraudulently mortgaged the property in her name without her consent. 

Despite the legal proceedings, the family remained living in the house for five more years and even renovated the garage into a rumpus room for the kids.

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

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

The Morecrofts, who have raised their two young daughters in the three-bedroom home, were devastated to learn the property (pictured) never belonged to them

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

However, the government proposed a contingent order that required the couple to first seek recovery for damages against the original owner and then pay one-third of the owner’s costs and one-third of the government’s cost. 

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

Last week, six registered bidders fought it out for the Mermaid Beach home. 

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. 

Despite the legal proceedings, the family remained living in the house for five more years and even renovated the garage into a rumpus room for the kids (pictured)

The Morecrofts, who have spent over $300,000 in legal fees fighting for the home, are now demanding compensation from the state government. 

In May, they started a petition which has since garnered over 17,000 signatures.  

‘As innocent victims caught up in this horrible situation, we were granted compensation by the court,’ the couple wrote. 

‘However, the Queensland government has chosen to appeal the decision, claiming that we do not qualify for compensation as we were never the registered property owners and are not direct victims of fraud.’

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

‘We are so humbled to know that you are all behind us in our fight to seek justice.’