Family farms, businesses and investment properties across Australia have often been built on trust. A parent says to their child, “Keep helping out and one day this will all be yours.” A business owner tells a long-serving employee, “One day, you’ll own this business.” No formal agreement is signed, no transfer documents are prepared, and no legal advice is obtained. People assume that good intentions will be enough. However, recent court decisions continue to demonstrate that informal promises can carry significant legal consequences.
One notable example is the New South Wales Supreme Court decision in Richard v Richard [2026] NSWSC 478. The case involved a family farming enterprise where a son worked on the property for many years, foregoing other employment opportunities while helping to build and maintain the family asset. He acted on a long-held belief that he would eventually inherit the farm. When family relationships later deteriorated and the transfer did not occur, the dispute ended up before the Court.
Rather than focusing solely on whether a written contract existed, the Court examined whether the conduct of the parties had created a legally enforceable expectation. Under a legal principle known as proprietary estoppel, courts may intervene where a person reasonably relies on a promise or assurance, suffers a disadvantage as a result, and it would be unfair for the promise-maker to withdraw that promise. In simple terms, if someone has structured their life around an expectation that was encouraged by another person, the Court may step in to provide a remedy.
Considerations of the Court
| Legal Factor | What the Court Examined |
| Assumption | Was an expectation of future ownership encouraged? |
| Reliance | Did the person act in reliance on that expectation? |
| Detriment | Did they suffer a financial or personal disadvantage? |
| Unfairness | Would it be unjust to ignore the promise? |
| Remedy | What outcome would achieve a fair result? |
This case demonstrates that succession planning is not only an issue for large farming families. Similar disputes can arise in relation to residential properties, family businesses, investment assets and informal property arrangements. Problems often emerge when expectations are allowed to develop over many years without being properly documented. In many cases, the cost of litigation far exceeds the cost of obtaining sound legal advice from the outset.
Property owners, buyers and sellers should ensure that important agreements are properly documented. A handshake may feel sufficient when relationships are strong, but circumstances can change. Clear written arrangements, succession plans and properly drafted legal documents help reduce uncertainty, minimise disputes and protect both assets and family relationships.
Flash Conveyancing Advice
If a property transfer, inheritance arrangement or family succession plan is important enough to discuss, it is important enough to document. Clear agreements today can help avoid costly disputes tomorrow. Early planning is often one of the most valuable investments a family can make.
Property is more than bricks and mortar—it often represents decades of hard work, family sacrifice and future aspirations. Julian and Renee from Flash Conveyancing help families turn intentions into certainty by ensuring property arrangements are properly structured and documented before misunderstandings arise. With extensive experience across the Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby and Parramatta council areas, they assist clients with buying, selling, transferring and succession planning for property throughout Acacia Gardens, Angus, Arndell Park, Blacktown, Colebee, Glendenning, Glenwood, Grantham Farm, Kellyville Ridge, Kings Langley, Marsden Park, Melonba, Oakhurst, Parklea, Quakers Hill, Riverstone, Schofields, Seven Hills, Stanhope Gardens, Tallawong, The Ponds, Baulkham Hills, Beaumont Hills, Bella Vista, Castle Hill, Kellyville, Kenthurst, North Rocks, Northmead, Rouse Hill, Vineyard, Windsor, Annangrove, Box Hill, Cattai, Dural, Gables, Galston, Glenhaven, Glenorie, Maraylya, Middle Dural, Nelson, North Kellyville, Norwest and Winston Hills. Their focus is simple: helping clients protect family wealth, avoid future disputes and ensure that today’s promises are supported by tomorrow’s legal certainty.