Forcing a Sale of a Jointly Owned Property QLD

Forcing a sale of a jointly owned property QLD… Is it possible? What to do? Read to find out!

When people, including family members, buy property together, disputes can arise if one party wants to sell. Section 38 of the Property Law Act (QLD) allows a court, upon application by any co-owner, to appoint trustees to sell the property. This means a court can appoint individuals to handle the sale if one co-owner refuses to sell.

Process of Selling Property Under Statutory Trustees

The Property Law Act outlines how the property should be sold and the rights of co-owners to bid. Courts generally find there is “practically speaking no defense” to such an application (Goodwin v Goodwin [2004] QCA 50).

Case Study: McPaul v Massignani and Anor [2023] QSC 98

In the recent Queensland Supreme Court case of McPaul v Massignani and Anor [2023] QSC 98, Chief Justice Bowskill addressed a situation where the appointment of statutory trustees was requested to sell a property. This case involved two sisters who had purchased a property together with the intention of joint development. When one sister decided to sell her share after learning that the property could not be subdivided. Whereas, the other sister opposed the sale based on a belief of long-term ownership.

The court found that the evidence did not support an equitable right to prevent the sale. Clear and unequivocal language would be required to prevent someone from exercising their right to sell. The discussions about the property’s long-term ownership did not have the legal effect of blocking the sale.

Importance of Planning for Co-Ownership Disputes

This decision highlights the importance of seeking legal advice and planning for potential disputes when buying property together. Other circumstances, such as bankruptcy or death, can also lead to a forcing a sale of a jointly owned property QLD.