Co-owning property can become problematic, especially when relationships between co-owners deteriorate or circumstances change. In such cases, section 66G of the Conveyancing Act 1919 (NSW) provides a legal solution by allowing a co-owner to seek a Court order for the forced sale of co-owned property.
Section 66G and Forced Sale of Co-Owned Property
Section 66G of the Conveyancing Act provides a mechanism for resolving disputes among co-owners of property. It allows a Court to issue an order for the property’s sale. This can be a crucial remedy when co-owners cannot agree on the management or disposal of the property. The Court can appoint a trustee to oversee the sale process. If appropriate, the Court can also partition the property into separate shares.
Understanding Co-Ownership
Co-ownership, as defined in section 66F of the Act, includes arrangements such as joint tenancy and tenancy in common. All co-owners must be involved in legal proceedings under section 66G. This ensures that the appointed trustee can effectively enforce the Court’s orders and manage the property sale or partition.
Definition of Property
Section 7 of the Act broadly defines “property” to include both real and personal property. In McNamee v Martin [2021] NSWSC 568, the Court included a loan interest in the property subject to section 66G orders. This broad definition allows the Court to address various types of assets under this section.
Court’s Discretion and Precedents in Forced Sale of Co-Owned Property
The Court has considerable discretion when granting orders under section 66G. Refusal of such orders is uncommon and generally only occurs if the order would conflict with established proprietary rights or fiduciary duties. In Gleeson (Trustee) v Coster [2024] FedCFamC2G 11, the Court determined that a de facto spouse who contributed more to the purchase price deserved a proportional share of the property. The Court placed the partner’s legal interest in trust for the de facto spouse to reflect their respective contributions
Financial Contributions and Trustee’s Role
In cases involving section 66G, the trustee appointed by the Court is responsible for addressing financial issues related to the property. This includes managing payments for rates, insurance, and mortgage obligations. The trustee will ensure they fairly distribute the net proceeds from the sale. Co-owners can bid on the property at sale, either at auction or otherwise, without needing to provide a deposit under section 66I of the Act.
Seeking Professional Advice
If you are facing a situation involving the forced sale of co-owned property, it is crucial to seek expert legal advice. At Jake McKinley, our experienced team can provide tailored guidance on navigating the complexities of section 66G. For help with your rights, managing the sale, and protecting your interests, contact us here.
Where co-owners cannot reach agreement, our commercial litigation lawyers can advise on a section 66G application.
