What is Co-Ownership?
Co-owner Property is the property owner by two or more people and represent as jointly registered proprietors of land. The property may be owned as joint tenants or as tenants in common.
There are many circumstances in life where one may end up as a joint owner of a property or land, either under a marriage or relationship, purchased with family members or relatives, inherited a family property.
It is always advisable that joint property owners can identify their profit or loss in a change of property value among themselves under a mutual agreement. However, in case of disagreement it is difficult to reach on common ground.
That is why one should always execute a co-ownership agreement in place, which will lay down the terms and conditions of the relationship between the co-owners. If one does not have co-ownership agreement in place, it is never late to execute the one.
In the case where co-ownership agreement is not in place and there is a dispute between the co-owners and one of the co-owners wishes to sell his share of the property and no common ground cannot be reached between the co-owners, in this case what one can do?
Solutions
A mutual agreement to sell the jointly owned property is the preferred outcome. However, if such an agreement cannot be reached then the parties may have to commence proceedings under the Conveyancing Act (NSW) 1919.
When one’s co-owner deny selling the property and are obstinate one will have no other option available but to initiate court proceedings.
In NSW, one may file an application under Section 66G of the NSW Conveyancing Act 1919 (‘the Act’) to the Supreme Court of NSW.
The Courts have discretionary power to consider an appointment of a Statutory Trustee (‘the Trustee’) to the property in dispute and vest the same to a Statutory Trust.
The trustees will have the power to sell the property and have a power to make certain modifications in the property pertaining to sale of the property.
After selling of the property these trustees will divide the money as per the share in the property.
Always use legal advice to better suit your needs.
