Can I be Forced to Sell my Property by a Joint Owner

It is not uncommon that family members, friends and even investors purchase property together but what happens if one of those purchasers want to sell but the other owner/s want to keep the property?

In New South Wales, the law allows a landowner to apply to the Court to force a sale if they no longer want to be an owner of the land and these applications are usually referred to as section 66G applications[1]. Such applications should only be used as a last resort but if an application has been made, the Courts are reluctant to deny it.

For instance, there was a recent case where a landowner who had a 1/56^th interest wanted to sell the land even though the other owners did not. The Courts allowed the owner with the 1/56^th interest to sell the entire land.[2] The proceeds of the sale are then distributed to all owners in proportion to their ownership.

It is only under very rare circumstances that a Court will deny an owner of the land his or her right to force a sale no matter how small their interest in the land is. Some of the grounds which the Courts may deny an application may include where a contractual right exists.  For example, where the parties have contracted out of the application of section 66G.

The Court will not refuse a S66G application on grounds of hardship or general unfairness. The Court has also held that the plaintiff does not need to try to negotiate a settlement with the co-owner before making a s66G application.

In other words, it is very hard to defend the application and the Court will likely force the sale of the property.

If you are having issues with a joint owner and you are looking for alternative options, contact our team at Solari and Stock Lawyers.

Article written by Suna Ozcan
Photo by Justin Lim on Unsplash

[1] S66 of the Conveyancing Act

[2] Eva Joy Ambrus v Lee Ellen Buchanan [2022] NSWSC 1628