How to Navigate a Property Co-Ownership Dispute

Understanding the Trustee Sale Regime under the Property Law Act 2023 (Qld)

By Nanae Yoshiwara, Senior Associate

Co-owning property can offer financial advantages, but relationships and disagreements can complicate decision‑making. When co‑owners cannot agree on sale, division, or maintenance of jointly held land, Queensland law offers a structured remedy under the Property Law Act 2023 (Qld).

What are Common Issues Faced by Co-Owners of Land?

When land is held by more than one owner, conflicts can arise for various reasons:

Disagreements over how the property should be managed or maintained.
One owner wants to sell while the other(s) want to keep the property.
Disagreements about financial responsibilities, like who should pay for rates, maintenance, or repairs.
Failure to contribute to the upkeep of the property or share the costs.
Concerns over who should occupy or use the land.

These types of disputes are often complicated by personal relationships, particularly in cases involving family members or business partners. These disputes can also become emotionally charged, especially when family relationships or long-standing friendships are involved. If you’re considering purchasing property with family, business partners or friends, read our article on how to avoid complications in a shared property purchase to help avoid these disputes in the future.

What Can You Do When Co-Owners Disagree?

Under the 2023 Act, co-owners may apply to the Supreme Court to resolve deadlocks through:

Sale of the property;
Physical division, or
A combination of both.

The applicant must notify any security interest holders within 30 days of filing the application. When co-owners are at an impasse, Queensland law allows one or more co-owners to apply to the Supreme Court to force a sale of the property or appoint a trustee to manage the sale of the property. This ensures that the property can be sold, even if one or more co-owners refuse to participate.

When Will the Court Appoint a Trustee?

If the Court concludes that appointing a trustee is necessary or desirable, it may order:

Trustee appointment,
Removal of a trustee,
Specific directives to the trustee regarding sale terms, distribution of proceeds, and remuneration.

A Co-Ownership Dispute Example: The Uncooperative Co-Owner

Imagine you inherited a property with your siblings. You would like to sell the property and divide the proceeds, but one sibling insists on keeping the property and refuses to cooperate. In this situation, you can apply to the court to appoint a trustee to sell the property, even if your sibling disagrees.

The court-appointed trustee will handle the sale, ensuring that all parties receive their fair share of the proceeds after expenses like mortgage repayments, unpaid rates, and legal costs are deducted.

What Orders Can the Court Make?

The Court has broad discretion to tailor orders by:

Directing sale by auction or private treaty,
Setting valuation standards or reserve prices,
Allowing co-owners to bid,
Requiring an independent valuation or timed completion,
Allocating sale costs or trustee’s fees,
Structuring division or compensation arrangements,
Ordering document production or actions necessary for effective execution.

Physical Division vs. Sale

The Court must prioritise sale, unless physical division or a mixed approach is more just and fair. It considers:

Current use of the property (residential or business),
Practicality of division,
Any special emotional or unique value for certain co-owners.

What Happens Once a Trustee is Appointed?

The trustee becomes vested in the property (subject to any security interests), similar to a vesting order under the Trusts Act.

Security interests over the whole property remain, but those over undivided shares are converted into interests in the sale proceeds.

Why Trustee Sale Often Encourages Settlement

The clear statutory structure and trustee’s independence mean that co-owners often reach negotiated solutions before proceeding. This mechanism also clarifies expectations, helps assess fairness of outcomes, and ensures efficient resolution.

How Argon Law Can Support You in a Shared Property Dispute

If you are facing a co-ownership dispute and considering forcing a sale, or if you are being pressured into a sale and want to protect your rights, we can help.

At Argon Law, we provide experienced legal advice and representation to guide you through the process. From drafting the necessary court documents to negotiating settlements and representing you in court, we ensure your interests are protected every step of the way.