Modernising Co-Ownership Disputes in Queensland: Statutory Trustee Appointments under the Property Law Act 2023
In our previous article we explored the new Property Law Act 2023 (the 2023 Act) and the proposed changes in relation to the appointment of Statutory Trustees as compared against Section 38 of the Property Law Act 1974 (Qld) (the 1974 Act).
The 2023 Act commenced operation on 1 August 2025 and represents a comprehensive change to property laws in Queensland replacing the 1974 Act. The 2023 Act impacts everyone from buyers, sellers, developers and investors and the process for appointing a statutory trustee.
For our purposes, Part 5, Division 2 (Section 30 to 43) of the 2023 Act deals with the sale or division of co-owned property including the appointment of a Statutory Trustee.
Applicable changes for Statutory Trustee appointments
The 2023 Act is much clearer in terms of the power of the Court, the type of orders and considerations for the appointment of Statutory Trustees to sell co-owned property and the extent to which the Court can set out the process to follow.
Some of our key (relevant) observations from the 2023 Act are set out below:
Section 33 - provides the basis for making an application and Section 34 - affirm the orders that can be made including:
o sale of the property and division of the proceeds; or
o physical division of the property; or
o a combination of both; and
o a specific 30-day timeframe for an applicant to provide a copy of the application to any party holding a security interest
Section 35 – set out a clear preference for Sale unless physical division or combination is fairer
Section 37 – provides specific considerations in deciding to either appoint or remove a Trustee and any order that the nature of the case requires including (in a sale scenario):
o Direct a Trustee as to the terms and conditions on which the sale is to be carried out;
o Direct distribution of the proceeds of the sale in a way stated by the court; and
o Remuneration of the Trustee be paid from the proceeds of the sale.
Section 38 – provides if the court orders a trustee be appointed, the order is taken to vest the property in the trustee
Section 39 - The 2023 Act is more prescriptive with Section 39 (1) specifying the court make also make any other order it considers appropriate, including any of the following:
o Private treaty or auction sales
o Permit a co-owner to buy out other parties via private treaty or auction
o Private sale - market value determined by an independent valuation
o Action sale - set a reserve price
o Independent valuation
o Set timeframes for sale or division
o Allocate costs to be paid by 1 or more of the co-owners or from the proceeds of sale, and
o Set terms and conditions for the sale and division of the proceeds of sale or the physical division of the property
o Direct parties to produce documents or take actions to facilitate the process.
Section 40 – provides the court may order that
o a co-owner pay compensation or make a reimbursement to another co-owner; or
o a co-owner account to another co-owner; or
o a co-owner’s interest in the property be adjusted to take account of amounts payable by the co-owners to each other during the co-ownership.
Final Takeaway
The Property Law Act 2023 significantly enhances and modernises the statutory trustee regime. It retains the essential mechanism for appointing trustees to resolve co-ownership disputes but aims to enrich it with:
Expanded court powers for crafting tailored remedies,
Explicit handling of security interests,
Provisions for both property sale and physical division,
Clearer, more flexible, and granular frameworks for trustee functions and outcomes.
In terms of how effective these new provisions will translate in real terms, only time will tell, so stay tuned.
How can QSAS help?
Wherever you’re located, the QSAS team can help you find the right solution to resolve your (or your client’s or family member’s) property dispute.
Contact us today for a confidential, no-obligation consultation to find out more about the options that might be available and how a statutory trustee appointment may assist.