Statutory Trustees – Section 66G Conveyancing Act 1919 (NSW)

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Why seek to appoint statutory trustees?

The appointment of statutory trustees is used to resolve disputes between (two or more) owners of real property in New South Wales.

It is used to resolve the deadlock between owners who cannot reach an agreement for the sale of the property, or negotiations have broken down between the parties as to which of them will purchase the other party’s interest and for what sum.

It is common to utilise seek the appointment of statutory trustees in a bankruptcy scenario, where only one of two owners of a property has been declared bankrupt, or a property is purchased by two or more parties for investment purposes, and there is a dispute among the parties regarding how the property should be dealt with.

What is the effect of the appointment of statutory trustees?

Section 66G of the Conveyancing Act provides the court with powers to appoint trustees (statutory trustees) and vest the interest in the property in the trustees to sell the property.

Orders are usually sought that the property be vacated so that the trustees may sell the property with vacant possession.

The statutory trustees will arrange for the property to be sold. After settlement takes place, the statutory trustees will then distribute the funds in accordance the orders of the court. This may result in money being paid directly to the owners of the property or paid into court pending the outcome of other proceedings.

Having Insolvency Concerns?

Please contact KHR Insolvency for an obligation free consultation to discuss your circumstances.