An elderly couple involved in a years-long dispute with the state over the ownership of an Education Department house face financial disaster if a final court appeal finds against them, their lawyer has argued.

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Robert and Finola McMahon purchased a block containing former Education Department flats at Rosebery, in the state's West, in 2005.

Robert and Finola McMahon have been involved in a legal battle over the Rosebery cottage since 2017. Picture by Ben Seeder

The state later claimed a major error had occurred in 2002 when the land title was

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