Blog
Sep 24

A Solution for Co-Ownership Disputes

The Role of Section 66G

Section 66G of the Conveyancing Act 1919 (NSW) provides a structured and fair process for resolving co-ownership disputes. This process creates a pathway for resolving co-ownership disputes by allowing one or more co-owners to apply to the Supreme Court for the appointment of trustees to manage the sale of the property. Section 66G is commonly used when co-owners cannot agree on whether or how to sell or divide the property. Levi Consulting act as Trustees, follow the orders of the Court, oversee the sale, ensure a fair process, and distribute the proceeds to the co-owners based on their ownership shares or Orders of the Court.

When to Use Section 66G

Section 66G is typically used in scenarios where disputes arise over co-owned properties. Here are some examples of common scenarios that occur:

  1. Inherited Property:

Sarah, Sebastian and Michael inherit a family home. Sarah and Sebastian want to sell the property and divide the proceeds, while Michael wants to keep the house for sentimental reasons. Unable to reach an agreement, Sarah and Sebastian apply to the Supreme Court under Section 66G. Trustees are appointed, the property is sold, and the proceeds are divided fairly among all three, resolving the deadlock.

  1. Investment Disagreements:

Jane and John co-own an investment property. Jane wants to sell to reinvest elsewhere, but John refuses. Jane successfully applies under Section 66G, and the court appoints trustees who oversee the sale, ensuring both parties receive their shares.

  1. Divorce Settlements:

Emma and Liam are divorcing and own a house together. Emma wants to sell the house and split the money, but Liam wants to keep it and buy Emma’s share. Emma goes to court and asks for help using Section 66G. The court appoints trustees to handle the sale. The house is sold, and the money from the sale is divided between Emma and Liam according to the court’s decision, helping them both move on with their lives.

  1. Business co-ownership dispute:

Peter and John are business partners who own a building where they run their company. After a major disagreement about how the business should be run, they can’t agree on what to do with the building. Peter wants to sell it, but John wants to keep it. Peter applies to the court under Section 66G. Trustees are appointed to sell the building, and the proceeds are split between Peter and John, allowing them to part ways without further conflict.

The Process for Applying Section 66G

Applying for Section 66G orders involves several steps:

  1. Application: A co-owner submits an application to the Supreme Court outlining the need for trustees due to unresolved disputes over the property.
  2. Court Hearing: The court considers arguments from both parties and reviews evidence supporting the need for trustees.
  3. Appointment of Trustees: If the court approves, trustees are appointed to oversee the sale process.
  4. Sale Process: Trustees handle marketing, selling, and dividing the proceeds fairly, all under the court’s supervision.

Court Considerations

The court has the discretion to grant or deny the application based on:

  • The nature of the dispute between the co-owners.
  • Whether there have been attempts to resolve the dispute amicably.
  • The fairness of the proposed sale and the financial implications for all parties.

The court may decline to appoint trustees if co-owners have a contrary agreement, the situation is deemed unconscionable, or the property is held in a trust with its own procedure for sale.

Recovering Your Money

Once the property is sold, trustees hold the proceeds on trust for the co-owners. After settling any legal fees, sale costs, and trustees’ fees, the remaining proceeds are often ordered by the Court to be distributed proportionately based on ownership shares or otherwise.  Adjustments may be made by the Court for disproportionate contributions toward the property’s purchase, mortgage repayments, or maintenance costs.

How Levi Consulting Can Help

At Levi Consulting, we have extensive experience acting as trustees under Section 66G appointments. Our services include:

  • Communicating with all parties and familiarising ourselves with the court’s orders;
  • Taking necessary steps to protect and preserve the property;
  • Marketing the property and working with real estate agents to obtain a fair market value;
  • Managing all aspects of the sale, from contract exchange to distributing proceeds as directed by the court; and
  • Providing expert guidance on tax considerations, including capital gains tax and income tax lodgement, and managing additional legal or financial matters that may arise.

For more information or a confidential discussion, contact David Levi at 0418 602 466.