A Statutory Trustee is a person or persons appointed by the Court for the purpose of selling real property (houses, land, buildings, etc.). The appointment of a Statutory Trustee generally occurs as a result of a dispute between one or more co-owners of the property where the parties cannot agree whether the property should be sold or where one party cannot raise sufficient funds to pay out the other party’s interest in the property. The aggrieved party may apply to Court for the appointment of a Statutory Trustee to sell the property pursuant to the following legislation:
- Queensland: Section 38 of the Property Law Act 1974 (QLD)
- New South Wales: Section 66G of the Conveyancing Act 1919 (NSW)
- Victoria: no provision in the Victorian legislation for the appointment of a Statutory Trustee
What causes a Statutory Trustee?
Statutory trustee applications are often made in bankruptcy situations where one of the co-owners is bankrupt and the other co-owner is not. If the non-bankrupt co-owner is unable to raise sufficient funds to purchase the bankrupt estate’s interest in the property, or does not agree to a joint sale of the property, the Trustee may consider an application to Court for the appointment of a Statutory Trustee to sell the property, regardless of whether the non-bankrupt co-owner agrees.
What are the expected outcomes of the appointment of a Statutory Trustee?
- Quantify the amounts owing to any creditors who hold security over the property (e.g. mortgagees, caveators, etc.)
- Determine the respective ownership interests in the property
- Obtain vacant possession of the property
- Undertake a marketing campaign for the sale of the property
- Pay out the valid security interests held over the property
- Distribute the balance of funds held after payment of the selling costs to the property owners
How can SV Partners help?
Our team are qualified and have undertaken numerous sales as Statutory Trustees. SV Partners have the required experience and qualifications to act as the Statutory Trustee in situations of disputes between parties over assets. With a team across the Eastern Seaboard, our approachable and accessible staff are able to provide the best possible solution according to an individual’s circumstances. For more information and an obligation free consultation please call our confidential assist line on 1800 246 801.