What is Section 66G?

Section 66G of the Conveyancing Act 1919 (NSW) provides a structured and fair process for resolving co-ownership disputes. It ensures that properties can be sold and proceeds distributed even when co-owners cannot reach an agreement on their own.

This is a mechanism for co-owners of property to resolve disputes when they cannot agree on the property’s sale or division. The section allows any co-owner to apply to the Supreme Court for the appointment of trustees to sell the property and distribute the proceeds among the co-owners. The primary benefits of Section 66G include resolution of deadlock, fair distribution and a clear legal process for sale and distribution of property, avoiding prolonged disputes amongst co-owners.

Examples of Section 66G in Action

Example 1: Inherited Property

Scenario: Three siblings inherit a property from their deceased parents. Two siblings want to sell the property and divide the proceeds, while the third sibling wants to retain the property for sentimental reasons and refuses to sell.

Application of Section 66G: The two siblings who want to sell can apply to the Supreme Court under Section 66G for the appointment of trustees to manage the sale of the property. The Court appoints trustees, the property is sold, and the proceeds are divided among the three siblings according to their inheritance shares. This ensures a fair outcome and resolves the deadlock.

Example 2: Investment Property with Disagreement on Sale

Scenario: Two friends purchase an investment property together with the intention of selling it after a few years to make a profit. After several years, one friend wants to sell the property to reinvest elsewhere, but the other friend wants to hold onto the property for longer-term gains.

Application of Section 66G: The friend who wishes to sell can apply to the Court under Section 66G to appoint trustees to sell the property. The property is then sold, and the proceeds are divided according to their ownership shares, allowing both parties to move forward with their individual investment strategies.

Example 3: Divorce Settlement

Scenario: A divorcing couple owns a property together. As part of the divorce proceedings, they cannot agree on what to do with the property. One party wants to sell it, while the other wants to retain it and buy out the other’s share but cannot afford to do so immediately.

Application of Section 66G: The party wanting to sell can apply to the Court under Section 66G. Trustees are appointed, and the property is sold. The proceeds from the sale are then divided according to the settlement agreement or the Court’s determination, providing a clear and equitable resolution to the dispute.

How We Can Help

We have extensive experience acting as Trustees in s 66G matters. If you are a lawyer or an affected party seeking advice on whether your situation is suitable for a s66G application, we invite you to contact us. You can reach out via Linkedin or directly contact David Levi at 0418 602 466. We are here to help you understand your options and guide you through the process.