Understanding Section 66G: A Solution for Property Disputes

When property disputes arise among co-owners, emotions can run high, and the path to resolution can seem daunting. Fortunately, in New South Wales, Section 66G of the Conveyancing Act 1919 offers a structured and impartial way to resolve such disputes, ensuring fairness and clarity for all involved. 

We sat down with Andrew Bowcher, a Partner in RSM’s Restructuring and Recovery division based in Wagga Wagga and Albury. Throughout his career, he’s worked closely with clients in regional NSW and Victoria, helping them navigate the complexities of financial and operational challenges. One area he often encounters is property co-ownership disputes. These situations can be emotionally charged and legally complex, but thankfully, Section 66G of the Conveyancing Act 1919 provides a clear and effective pathway to resolution.

In Andrew’s experience, Section 66G is particularly useful in these situations:

• Family Inheritance Disputes: When siblings or other family members inherit property, disagreements about what to do with it are common.
• Business Partnership Breakdowns: If your business partnership has ended but you still jointly own property, Section 66G can help resolve the issue.
• Agribusiness Ownership Disputes: In regional areas like the Riverina, disputes over farming properties frequently arise, especially during succession planning.

Do any of these scenarios sound familiar? If so, Section 66G could offer the clarity and structure you need to move forward. Let’s take you through what it is, how it works, and how it might help you or someone you know.

What is Section 66G?

Section 66G is a legal provision designed to help co-owners of property resolve disputes. If you and your co-owner cannot agree on how to manage or sell a property, Section 66G allows you to apply to the court to appoint a trustee. This trustee will oversee the sale of the property and ensure the proceeds are divided fairly. 

Whether you co-own property with family members, business partners, or others, disputes can arise for many reasons. Relationships change, priorities shift, and managing a property together can quickly become a source of stress. Section 66G provides a clear and fair pathway to resolve these situations, removing much of the emotion and conflict. 

How does Section 66G work?

Andrew explains the process begins when one co-owner applies to the court to appoint a trustee. This trustee—often an experienced insolvency practitioner or property expert—is tasked with managing the sale of the property. 

If you’ve reached an impasse with your co-owner, here’s how the Section 66G process unfolds: 

1. Applying to the Court: You can apply to the court for a trustee to be appointed to handle the sale of the property. This involves nominating a trustee and obtaining their consent to act. 
2. Notifying Co-Owners: Once the application is filed, the court notifies the other co-owners and gives them the opportunity to respond. 
3. Court Hearing: The court reviews your application and the circumstances of the dispute. 
4. Appointment of a Trustee: If the court approves your application, a trustee is appointed to manage the sale of the property. 
5. Sale of the Property: The trustee handles the marketing, sale, and distribution of the proceeds, ensuring everything is conducted fairly and transparently. 
6. This process takes the decision-making out of your hands, giving you an impartial expert to manage the resolution. 

The benefits of Section 66G

Section 66G can be the right choice for you if other methods, like negotiation or mediation, haven’t worked. It offers several key benefits: 

• Structure and Clarity: The process is laid out clearly, with court oversight to ensure fairness. 
• Impartiality: The trustee is an independent professional who prioritises a just resolution for all parties. 
• Conflict Reduction: By removing you and your co-owner from the decision-making process, Section 66G minimises personal conflict. 
• Transparency: The trustee manages all financial aspects, including repaying loans and dividing proceeds, so you can trust that everything is above board. 

Challenges and considerations

While Section 66G is an effective solution, it’s important to understand its challenges:

• Costs: There are legal fees and trustee costs involved, but these are generally paid out of the property sale proceeds. 
• Time: The court process can take longer than private negotiations. 
• Loss of Control: You’ll need to trust the appointed trustee to manage the process. 

If you’re prepared for these considerations, Section 66G can provide a pathway to a fair resolution.

Alternatives to Section 66G

Before resorting to Section 66G, you should explore other options: 

• Negotiation: Direct communication can sometimes resolve disputes. 
• Mediation: Engaging a professional mediator can help parties reach a voluntary agreement. 
• Buyouts: One co-owner may offer to purchase the other’s share of the property. 

If these avenues fail, Section 66G provides a reliable, fair next step. 

Key Takeaways

• Section 66G provides a structured, impartial way to resolve property co-ownership disputes in NSW. 
• It’s particularly useful in cases involving family conflicts, partnership breakdowns, or agribusiness disputes. 
• While there are costs and a potential loss of control, the process ensures a fair outcome when all else fails. 

Need help resolving a property dispute?

If you’re dealing with a property dispute and feel stuck, Andrew is here to help. Section 66G is just one of the many tools used to guide you towards a resolution that works for you. At RSM, we specialise in helping individuals and businesses navigate complex disputes, always with a focus on practical, commercial outcomes. 

Don’t wait until the situation worsens. Contact Andrew or one of our Restructuring and Insolvency experts for a confidential consultation and let’s find a solution together.