Property and Co-Ownership Disputes
Stuck in a property deadlock? How Section 66G can help you move forward
Owning property with family, a partner, or a friend can be a fantastic investment and a shared dream. But what happens when that dream sours, and co-owners can no longer agree on the future of their shared asset? One of the most common and stressful disputes arises when one co-owner wishes to sell the property, but the other refuses.
This situation can create a frustrating deadlock, leaving your capital tied up and preventing you from moving on. Thankfully, New South Wales legislation provides a powerful legal remedy to break this stalemate: Section 66G of the Conveyancing Act 1919.
What is Section 66G of the Conveyancing Act?
In simple terms, Section 66G is a legal mechanism that allows a co-owner of a property to apply to the Supreme Court of NSW to have the property sold, regardless of whether the other co-owners consent.
The court achieves this by making an order to appoint an independent person, known as a ‘trustee for sale’. This trustee is given the legal authority and responsibility to manage the sale of the property on behalf of all owners. The primary purpose of this section is to prevent the injustice of a person being trapped in a co-ownership arrangement they no longer wish to be a part of.
How does the process work?
While every case has its unique circumstances, a Section 66G application generally follows a clear process:
Application to the Court: The process begins when one or more co-owners file a Summons in the Supreme Court of NSW, seeking an order for the appointment of a trustee for sale.
The Court’s decision: The Court has the power to make the order as requested. Importantly, the court’s discretion to refuse the order is very narrow. Unless there is a compelling legal or equitable reason why the sale should not proceed (for example, a pre-existing agreement between the owners not to sell), the court will typically grant the application. The other co-owner’s simple refusal to sell is not enough to stop the order from being made.
Appointment of a Trustee: If the order is granted, the court appoints a trustee (often an impartial solicitor, accountant, or licensed real estate agent) to take control of the sale process.
Sale of the property: The trustee effectively steps into the shoes of the owners. Their duties include:
Obtaining property valuations.
Engaging a real estate agent.
Marketing the property for sale.
Executing the contract of sale, usually via public auction to ensure transparency and a fair market price.
Distribution of proceeds: After the sale is complete, the trustee will collect the proceeds and distribute them in a specific order:
First, to pay the costs of the sale (e.g., agent’s commission, marketing costs).
Second, to pay their own professional fees and the legal costs of the application.
Third, to pay out any mortgages or other debts secured against the property.
Finally, to distribute the remaining balance to the co-owners according to their respective shares in the property (e.g., 50/50, or any other proportion as per the title).
How we can help
Navigating a property dispute and the court system can be a complex and emotionally draining experience. Our experienced property law team understands the intricacies of co-ownership disputes and the operation of Section 66G.
We can assist you by:
Providing clear, practical advice on your rights and obligations as a co-owner.
Attempting to negotiate a resolution with the other party to avoid court proceedings where possible.
Preparing and filing your Section 66G application with the Supreme Court.
Representing you throughout the court process to ensure your interests are protected.
Guiding you through every step, from deadlock to a successful sale and resolution.
If you are in a property dispute with a co-owner and need to understand your options, contact our experienced team today for a confidential discussion about your situation.
Disclaimer: The content of this article is intended to provide general information only and does not constitute legal advice. You should seek tailored legal advice for your specific circumstances before taking any action.