Forcing the Sale of a Co-Owned Property

Joint property ownership among relatives and friends is increasingly common as a means to enter the real estate market when individual financial resources are insufficient.

Common Issues

Disputes often arise when one co-owner wishes to sell their share in the property, but the other owner/s either oppose the sale or lack the financial means to buy out the party wishing to sell. If an agreement cannot be reached between the owners on what to do with the property, section 38 of the Property Law Act 1974 (Qld) allows a co-owner to apply to the court for the appointment of a statutory trustee to sell the property.

Navigating the Process

The process involves filing an application to the court, supported by affidavit evidence and the consent of a statutory trustee. Once appointed, the statutory trustee will sell the property and, after payment of any outstanding debts and expenses (for example, mortgages, real estate commissions etc), will either:

1. distribute the proceeds of the sale according to any further orders made by the court; or
2. held in trust until the parties reach an agreement if the parties are in dispute about the distribution.

Challenging the Appointment

An application to appoint a statutory trustee can be difficult to oppose. While the outcome depends on the specific facts and evidence put forward to the court, there may be grounds on which you can challenge the appointment. A common example is when co-owners have an agreement made at the time of purchase that outlines how the property will be sold in the future. For example, it may be that there is an agreement between co-owners (either written or oral), that the property was acquired with the intention of holding it for a period of 5 years before selling it. If so, this will be a relevant matter to consider by the court before appointing a statutory trustee.

Preventing Future Disputes

If you are in the process of purchasing a property with either a group of investors or a family member/ friend, insisting on a written agreement that outlines the rights and obligations of the co-owners can prevent disputes from arising later. On the other hand, if you require advice on forcing the sale of a property or defending an application for the appointment of a statutory trustee, contact our litigation team at Greenhalgh Pickard.

Special Considerations for Family Disputes

It should be noted that an application to appoint a statutory trustee applies to situations where family members or friends jointly acquire real estate and is not applicable to real estate held jointly by parties going through a separation. These types of property disputes are appropriately dealt with under the Family Law Act 1975 (Qld).

Get Trusted Legal Advice

For trusted advice on joint property ownership disputes, forcing the sale of a co-owned property, or defending against a statutory trustee application, contact the experienced Litigation team at Greenhalgh Pickard. Our Solicitors can guide you through the complexities of property law and ensure your interests are protected.