Disputes between co-owners of property are increasingly common, especially where relationships break down and one party wants to sell while the other refuses. In Queensland, the Property Law Act 1974 provides a mechanism for resolving these deadlocks — the appointment of a statutory trustee for sale.
This article is intended for solicitors, accountants and other professionals who may need to refer clients for assistance in these matters. It outlines the legal framework, the benefits of appointing a professional trustee, and our availability to act in this capacity.
The legal framework – section 38 of the Property Law Act
Under section 38 of the Property Law Act 1974 (Qld), any person holding property with others as co-owners can apply to the Supreme Court for the appointment of a trustee for sale. This applies regardless of whether the parties hold the property as joint tenants or tenants in common.
The Court may make orders for:
- The appointment of trustees (usually one or two individuals)
- The sale of the property and distribution of proceeds
- Directions for the conduct of the sale
- Occupation, rent or accounting issues
- Protection of the interests of all parties
The section is designed to ensure that no co-owner is forced to remain in an unworkable ownership arrangement indefinitely.
When an appointment is necessary
Statutory trustee applications are commonly required in situations such as:
- Former spouses or partners who jointly own property but cannot agree on how to divide it
- Siblings or family members who have inherited a property and have different intentions for its use or sale
- Business partners or unrelated investors where one party refuses to sell, refinance or buy out the other
- Co-owners in financial distress, where one party is uncontactable or obstructive
Often, these disputes involve emotional, practical or financial complexities that prevent resolution by negotiation. A neutral and court-appointed trustee provides a structured pathway to unlock the value of the asset.
The role of the trustee for sale
Once appointed, the statutory trustee is responsible for:
- Taking control of the property and managing access or tenancy arrangements
- Engaging agents or valuers to determine the best method of sale
- Marketing and selling the property at a fair price
- Accounting for sale proceeds, discharge of liabilities, and distribution of net proceeds
- Reporting to the Court or the parties as required
The trustee acts impartially and in accordance with the Court’s orders, with a duty to preserve the property and maximise returns for all beneficiaries.
Why appoint a solicitor as trustee
In many cases, it is appropriate to appoint a solicitor as trustee — particularly where:
- The dispute is complex and requires careful communication and process management
- There are unresolved legal or accounting issues affecting the co-owners
- A high degree of neutrality, confidentiality and procedural rigour is needed
- There is no agreement between the parties as to who should act
As solicitors experienced in acting as statutory trustee for sale, we are well placed to:
- Navigate difficult personal dynamics between co-owners
- Coordinate with agents, valuers, mortgagees and accountants
- Ensure proper compliance with Court orders and trustee obligations
- Facilitate cost-effective administration and timely realisation of the property
We accept appointments directly or through orders made by the Supreme Court.
Referral pathway
We regularly accept referrals from other solicitors, accountants, mortgage brokers, financial advisers and family law practitioners who encounter co-ownership disputes within their client base.
If your client is involved in a property deadlock and needs an experienced, independent statutory trustee to facilitate a sale, we are available to assist.
Disclaimer: This content is intended as general commentary and may not be applicable to your specific situation. It does not replace independent legal advice.
For a no-obligation consultation on various matters, you can contact us at (07) 3184 2424.