Jointly owned property disputes – Forcing a sale of property in the state of New South Wales

30 Nov Jointly owned property disputes – Forcing a sale of property in the state of New South Wales

Reviewed September 2026. Section 66G of the Conveyancing Act 1919 (NSW), which this article explains, still applies to co-owners who can’t agree on selling a property in NSW. This article is general information, not legal advice.

Co-owners’ property disputes

You can end up owning property or land jointly in many ways. You might buy with a spouse or partner, with family or relatives, or as an investment. You might also inherit a family property. What should you do when that relationship ends? How can you resolve the dispute and still protect and realise your share of the jointly owned property?

Can’t agree with your co-owner about selling?

Usually, co-owners agree between themselves how to share any gain or loss in the property’s value. When they disagree, it becomes hard to reach agreement and sell. When a relationship breaks down, a co-owner may withhold key financial information. They may also refuse to cooperate with you or your representative on a sale. If you have not yet bought a property with someone else, put a co-owners’ agreement in place first.

Co-owners’ agreements

A co-ownership agreement signed before you buy sets out each party’s rights, obligations and responsibilities. It can also explain how to:

• value and sell the property
• resolve disputes or differences of opinion
• sell a share, or buy out other co-owners.

A poorly drafted agreement can, however, limit your ability to go to court to force a sale. If you have no co-owners’ agreement, or it has gaps, try mediation before you start legal proceedings.

Talk to each other

The first step is to talk with your co-owners, calmly and constructively where you can. Go in with a clear plan. It should cover why you want or need to sell, and how you propose to sell the property or your share. A plan helps you understand each party’s rights and obligations under any co-owners’ agreement. It also helps you prepare for disagreement and work out your options. Sometimes there is too much animosity for mediation to produce a reasonable agreement.

Documentation is key

Whatever your plan, keep a record of all dealings and correspondence between the parties. If the dispute goes to court, you will need to show the steps you took to resolve it. You will also need to show how the other parties failed to comply with any co-ownership agreement.

Apply to appoint a statutory trustee to sell the property

If your co-owners refuse to sell and will not cooperate, your only option is to start court proceedings. In NSW, you can apply to the Supreme Court of NSW under section 66G of the Conveyancing Act 1919 (NSW). Your application sets out your circumstances and your past negotiations with the co-owners about the dispute or the sale. The court has discretion to appoint a statutory trustee and vest the property in a statutory trust. The court will usually give the trustee the powers needed to control and sell the property. The trustee must use these powers with the care, diligence and skill expected of a reasonable person managing someone else’s affairs. The trustee must also act in the best interests of the trust’s beneficiaries. This is similar to a liquidator’s duties when using powers under the Corporations Act 2001. The trustee can also repair and improve the property. They can engage tradespeople, solicitors and agents for the sale. The trustee must sell within a reasonable time, for the best price the market and circumstances allow. Under the Act, a buyer does not need the co-owners’ consent when the trustee sells under the court’s authority. A sale by the trustee does not sever the tenancy.

How the sale proceeds are shared

After the sale, and subject to any encumbrances, the trustee holds the net proceeds on trust until they are distributed to the beneficiaries. The trustee is entitled to be reimbursed for costs and expenses properly incurred in running the trust. The trustee’s fees are agreed with the beneficiaries or set by the court. Co-owners do not necessarily share the surplus equally. The split depends on what each person contributed to the property. Contributions include:

• mortgage repayments
• council and water rates
• home insurance
• rent, if one co-owner lives in the property and excludes the others
• major improvements that add value to the land or property.

If one co-owner contributed more than the others, a full account is needed so that each co-owner receives their fair share.

How Greengate Advisory can help

Greengate Advisory works in restructuring, insolvency and financial investigation for small and medium businesses and individuals. Are you a co-owner who wants the property sold? Or does another co-owner want to sell? Get professional advice on your rights and liabilities first. We regularly act as external administrators on official appointments under the Corporations Act 2001. We know how to work within strict legal requirements and meet the fiduciary duties that the law and the court impose. We can analyse the options open to you in a dispute with your co-owners and give you practical advice. We have acted as trustee of a statutory trust, managing the trust administration to reach a reasonable and timely outcome for all parties. Download a PDF Copy