30 Nov Jointly owned property disputes – Forcing a sale of property in the state of New South Wales
Posted at 30 November, 2021
in News
Updated October 2026 with recent NSW Supreme Court decisions (see “What recent NSW cases say” below). 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.
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.
What recent NSW cases say (2024–2026)
The NSW Supreme Court continues to apply section 66G consistently. These recent decisions show what that means in practice.A sale order is close to automatic
The NSW Court of Appeal has said that although an order under section 66G is discretionary, it is made almost as of right unless, on settled principles, it would be inequitable (Foundas v Arambatzis [2020] NSWCA 47 at [63]). In Vo v Nguyen [2026] NSWSC 692 (12 June 2026), a separated couple each owned half a property. The mortgage was in arrears, and the co-owner living there with two children wanted more time to buy the other out. The court restated that the grounds for refusing an order are limited: where it would be inconsistent with a proprietary right, a contractual or fiduciary obligation, or an equitable or conventional estoppel. There is no general power to refuse because of hardship or unfairness, and the co-owner opposing the order must show a reason not to make it. The court appointed trustees for sale, but stayed the orders for a few weeks so the parties could keep negotiating. It also made orders under section 66I allowing either co-owner to buy the property from the trustees, and directed that the net proceeds be paid into court because the parties were likely to dispute their contributions. In Rance v Dempsey (No 5) [2026] NSWSC 270 (26 March 2026), the court appointed trustees for sale despite arguments that the opposing party had a quasi-proprietary interest and that a sale would undercut her family provision claim under the Succession Act 2006 (NSW). The applicant had undertaken to hold the sale proceeds until that claim was resolved.Who pays the legal costs
The usual order is that the costs of a section 66G application are paid out of the sale proceeds, because the proceedings are an incident of co-ownership (Kardos v Sarbutt (No 2) [2006] NSWCA 206 at [28]–[31]). In Red Arrow Holdings v Diza Pty Ltd [2025] NSWSC 849 (30 July 2025), that is the order the court made. Unreasonable conduct can change this. In Rance v Dempsey (No 6) [2026] NSWSC 673 (11 June 2026), the court found the defendant’s opposition to the sale unreasonable and ordered her to pay the applicant’s costs out of her share of the proceeds, or personally if her share was not enough. The court declined to order indemnity costs. The practical lesson: resisting a sale without one of the recognised grounds can mean paying the other side’s costs from your own share.Adjusting the shares when the proceeds are divided
In Parkas v Shankar [2025] NSWSC 1140 (30 September 2025), the court held that the allowance for improvements is limited to money a co-owner actually spent. It does not extend to the value of the co-owner’s own time and labour in doing the work. Credit does extend to mortgage instalments one co-owner paid on a debt for which all co-owners were jointly liable (Ryan v Dries [2002] NSWCA 3). Keep receipts and bank records for everything you pay towards the property.When receivers are appointed over a co-owner’s property
A receiver appointed over a co-owner’s property is not itself a “co-owner” under section 66G, so it cannot apply for a sale in its own right: Taylor v Papantoniou [2024] NSWSC 1192. In Albarran v Eaton Investments (Aust) Pty Ltd [2026] NSWSC 194 (12 March 2026), receivers of one co-owner’s property applied for a sale. The other co-owner did not oppose, but the court inclined to the view that non-opposition did not satisfy the requirement that a co-owner apply. The problem was cured by joining that co-owner as a plaintiff, using the receivers’ power to bring proceedings in his name. The receivers were then appointed trustees for sale, and the court saw no conflict in a receiver also acting as trustee for sale. Where a co-owner is bankrupt rather than in receivership, see bankruptcy and jointly owned property.Related guides
- Joint tenants vs tenants in common in NSW: how each form of co-ownership works, what happens on death, and how section 66G applies to both.
- Severing a joint tenancy in NSW: ending the right of survivorship, and why timing matters in a dispute.
- Bankruptcy and jointly owned property: what happens when a co-owner becomes bankrupt and their trustee owns their share.
- Trustee for sale appointments
- Buying out a co-owner in NSW
- Occupation fees and credits when one co-owner lives in the property
