Understanding Section 66G

Imagine a three-way tug-of-war over a family home, or business partners locked in an endless stalemate over their commercial property. When the dream of property co-ownership turns into a nightmare, Section 66G of the Conveyancing Act 1919 (NSW) emerges as the referee who can finally blow the whistle and end the game. This powerful legal tool allows the Supreme Court of New South Wales to appoint trustees who act as neutral players, steering the ship safely to shore through the storm of dispute.

Recent data paints a telling picture: 30% of co-ownership disputes in NSW arise from broken agreements, while property co-ownership tangles make up 12% of all property disputes. As more people join forces to climb the property ladder, knowing about Section 66G becomes as crucial as having home insurance.

When to Consider Section 66G

Common scenarios where Section 66G proves valuable include:

Inherited Property Disputes

When multiple family members inherit a property, conflicting desires about whether to sell or retain the property can create tension. For example, when two siblings wish to sell an inherited family home while another wants to keep it for sentimental reasons, Section 66G provides a clear path to resolution.

Investment Property Disagreements

Co-investors often reach impasses when their investment strategies diverge. One party might wish to sell and reinvest elsewhere while another prefers to hold the property for longer-term gains. Section 66G enables either party to initiate a resolution process.

Divorce Settlements

Property division during divorce proceedings can become particularly contentious. When couples cannot agree on property disposition, Section 66G offers a neutral, court-supervised process for resolution.

Business Co-ownership Conflicts

When business partnerships deteriorate, disagreements over jointly owned commercial property can hinder business operations. Section 66G provides a mechanism for resolving these disputes efficiently.

The Section 66G Process

Application and Court Proceedings

1. Initial Application: A co-owner files an application with the Supreme Court, including:
   • Detailed property information
   • Justification for trustee appointment
   • Evidence of attempted resolution
   • Proposed trustees’ consent
2. Court Hearing: The court reviews arguments and evidence from all parties, considering:
   • Nature and extent of disagreements
   • Previous attempts at resolution
   • Financial implications for all parties
   • Overall fairness of the proposed solution

Role of Appointed Trustees

Once appointed, trustees manage several crucial aspects:

• Property valuation and marketing strategy
• Selection and oversight of real estate agents
• Sale process management
• Proceeds distribution according to court orders or ownership shares
• Tax consideration management
• Resolution of additional legal or financial matters

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.