If more than one person or entity owns property in NSW, the ownership options are joint tenancy or tenancy in common.
If the owners of the property are joint tenants, then they jointly own the property. If the owners of the property are tenants in common, then they would each own a share in the property.
If there is a dispute between owners of a property when the ownership is tenancy in common, and if it cannot be resolved by negotiation, section 66G of the Conveyancing Act 1919 NSW provides a legal option.
Section 66G allows an owner to apply to the Supreme Court of NSW for an order for the appointment of a trustee for the sale of the property. Here’s how it works:
- Application to the Court: The co-owner who wishes to sell must file an application to the Supreme Court under Section 66G. The application must detail the reasons for the sale and the inability to reach an agreement with the other co-owner.
- Appointment of Trustees: If the court is satisfied that it is just and equitable to do so, it will appoint a trustee to manage the property. This enables the trustee to sell the property, despite the objection of any co-owner, and hold the sale proceeds on trust for the co-owners until distribution occurs.
- Distribution of Proceeds: After the sale, the proceeds are distributed among the co-owners according to their respective shares in the property. The trustees must act impartially and ensure that the distribution is fair and in accordance with the legal entitlements of each co-owner.
It is best practice to seek a resolution without resorting to a Court application, however if there is a dispute that cannot be resolved, section 66G is available to a co-owner to force a sale.
Section 66G – Statutory Trusts for Sale or Partition of Property Held in Co-ownership
Kristy Nunn is a Director of Mullane & Lindsay and is the leader of our Litigation Team. She has over 20 years’ experience as a litigation lawyer.
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