When co-owners cannot agree about selling property in NSW

Owning property with someone else can become difficult when you no longer agree about what should happen next. This is especially stressful if one owner wants to sell, but another owner refuses, delays, or will not cooperate.

If you are in that situation, section 66G of the Conveyancing Act 1919 (NSW) may provide a way forward. It allows the Supreme Court of New South Wales to appoint trustees to sell the property so that the deadlock can be resolved.

What is a section 66G application?

A section 66G application is a court process that can help end a dispute between co-owners of real estate. Any co-owner can apply, even if they own only a small share of the property.

If the application is successful, the Court appoints trustees to take control of the sale process. The property is then sold, and the net proceeds are distributed between the owners according to their legal interests, unless there is a separate dispute about who should receive what.

When might you need one?

You may need to consider a section 66G application if you co-own a property and agreement has broken down. This often happens when one owner wants the property sold, but another owner will not agree to sell or will not participate in the sale process.

These disputes often arise within families, including between siblings, parents and adult children, cousins, or relatives who have inherited property together. They can also arise after relationship breakdowns, business arrangements, or informal family agreements.

What can the Court do?

The Court can appoint trustees to sell the property. The trustees then manage the sale independently, rather than leaving the co-owners to keep arguing about how, when, or whether the property should be sold.

How does the process work?

The application is usually started by filing a summons in the Supreme Court of New South Wales. The application is supported by affidavit evidence explaining who owns the property, what has happened, and why court orders are needed.

The evidence will usually include details of the dispute, the steps already taken to try to resolve it, and the proposed trustees who are willing to act if appointed by the Court.

The other co-owners must be served with the application. The Court will then manage the matter and, if appropriate, make orders appointing trustees for sale.

Why legal advice is important

A section 66G application can be an effective way to break a deadlock, but it is still a court process. Before starting proceedings, it is important to understand the likely costs, risks, timing, and practical consequences.

Some important issues to consider include:

• the legal costs of bringing the application;
• the trustees’ costs and sale expenses;
• whether there may be arguments about contributions, improvements, mortgage payments, rent, or occupation of the property;
• the loss of control over the sale process once trustees are appointed; and
• whether there are any better options for resolving the dispute without Court proceedings.

Need help with a co-owned property dispute?

If you are unable to agree with another co-owner about selling a property, we can help you understand your options and the steps involved. Our Dispute and Litigation Team can advise you about whether a section 66G application is appropriate and guide you through the process. Contact us today.