---
title: "Family accommodation (granny flat) agreement with independent advice certificates"
url: "https://ailawframework.com/precedents/elder-law-and-powers-of-attorney-guardianship/family-accommodation-granny-flat-agreement"
type: "precedent"
site: "AI Law Framework"
id: "a18-family-accommodation-granny-flat-agreement"
area_id: "A18"
kind: "agreement"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Family accommodation (granny flat) agreement with independent advice certificates

> Written family accommodation agreement giving an older person a right to occupy for life in exchange for a transfer or payment, with care, cost-sharing, exit and repayment terms, designed to meet the CGT exemption…

Canonical page: https://ailawframework.com/precedents/elder-law-and-powers-of-attorney-guardianship/family-accommodation-granny-flat-agreement  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

Written family accommodation agreement giving an older person a right to occupy for life in exchange for a transfer or payment, with care, cost-sharing, exit and repayment terms, designed to meet the CGT exemption conditions and reduce elder financial abuse risk.

## Key facts

- Kind: Agreement. A contract between two or more parties.
- Practice area: [Elder Law & Powers of Attorney / Guardianship](https://ailawframework.com/precedents/elder-law-and-powers-of-attorney-guardianship.md)
- Jurisdictions: Australia, Commonwealth, New South Wales
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 4 authorities it cites, for Australia, Commonwealth and New South Wales.

## When to use it

Use when an older person transfers money or property to a family member in exchange for a home for life. The older person must get independent legal and financial advice. Do not use if the arrangement is commercial, or if there are signs of pressure or lack of capacity.

## How AI may be used

AI may assemble the agreement from the structure the lawyer has chosen and the family's instructions, and model pension and tax scenarios from rules the lawyer specifies. Independent advice to the older person and the undue influence assessment stay with lawyers.

**AI may:**

- Populate the agreement from the lawyer's chosen structure and instructions, listing gaps
- Prepare a schedule of contributions and a repayment calculation table from figures supplied

**AI must not:**

- Must not advise the older person or the family members, or treat them as one client
- Must not assess pension, CGT or duty outcomes as final advice
- Must not omit the exit and repayment terms to simplify the document

**The lawyer checks:**

- Separate lawyers and independent advice for the older person
- CGT exemption conditions in s 137-15 met, and social security advice obtained
- Exit events, repayment formula and security for the older person

## Authorities

- [Income Tax Assessment Act 1997 (Cth) Div 137, ss 137-10 to 137-25 (no CGT event when a granny flat arrangement is entered into, varied or terminated)](https://www.legislation.gov.au/C2004A05138/latest/text)
- [Australian Taxation Office, Granny flat arrangements and CGT (official guidance)](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/granny-flat-arrangements-and-cgt)
- [Social Security Act 1991 (Cth) (granny flat interest rules)](https://www.legislation.gov.au/C2004A04121/latest)
- [Department of Social Services, Social Security Guide 4.6.4.50 (granny flat interests)](https://guides.dss.gov.au/social-security-guide/4/6/4/50)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/elder-law-and-powers-of-attorney-guardianship/family-accommodation-granny-flat-agreement and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*