The Statutory Trustee Process in Queensland

When co-owners of a property can’t agree on what should happen next, things can quickly become stressful.

Appointing a Statutory Trustee can provide a clear, structured way forward.

Below, we explain what a Statutory Trustee is, what their role involves, and the key issues to consider before applying to the Court.

Let’s break it down: What is a Statutory Trustee?

A Statutory Trustee is an independent person appointed by order of the Court to manage and coordinate the sale of real property in Queensland.

As part of the application process, co-owners may propose an independent professional, such as Queensland Statutory Asset Services, for the Court’s consideration.

In most cases, the appointment is made under section 37 of the Property Law Act 2023 (Qld), or equivalent legislation in other Australian jurisdictions.

The Court has the power to make orders relating to the appointment, removal and authority of a Statutory Trustee, including:

  • directing the terms and conditions of the property sale

  • determining how sale proceeds are to be distributed

  • authorising payment of the Statutory Trustee’s remuneration from sale proceeds

The purpose of the appointment is to ensure the property is dealt with lawfully, fairly, and impartially when agreement between co-owners cannot be reached.

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What is the role of a Statutory Trustee?

A Statutory Trustee acts in accordance with the specific powers set out in the Court Order and does not act on behalf of any one party.

In general terms, the role involves coordinating the sale or resolution of the property and distributing the net proceeds to the relevant co-owners or beneficiaries.

Depending on the Order, responsibilities may include:

  • securing and protecting the property

  • preparing the property for sale

  • arranging independent property valuations

  • coordinating real estate agents and marketing campaigns

  • liaising with councils, utilities and body corporates

  • managing encumbrances such as mortgages, caveats and leases

  • addressing tenant or occupant matters

  • ensuring statutory and compliance obligations are met

  • distributing sale proceeds in accordance with Court directions

  • consulting with legal advisors and relevant stakeholders

Throughout the process, the Statutory Trustee must remain independent, transparent, and accountable to the Court.

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Important Issues to Consider

Before applying to the Court for the appointment of a Statutory Trustee, it is important to carefully consider both the legal and practical implications of the proposed Order.

Key considerations include:

  • Engaging experienced legal representation
    Applications for the appointment of a Statutory Trustee should be prepared with the assistance of a solicitor experienced in this area to ensure compliance with legislative requirements and proper structuring of the Order sought.

  • Balancing competing stakeholder interests
    Careful consideration should be given to balancing the interests of disputing parties. Failure to appropriately address competing positions may result in extended disputes, increased legal costs and reduced net sale proceeds available for distribution.

  • Ensuring appropriate Trustee powers
    The proposed Court Order should provide the Statutory Trustee with sufficient authority to effectively carry out their duties. Overly restrictive terms may limit the Trustee’s ability to properly administer and complete the sale process.

  • Clarifying Trustee remuneration and payment priorities
    It is important that the Court Order clearly outlines the Statutory Trustee’s entitlement to remuneration, including the method and priority of payment from sale proceeds.

  • Confirming alignment between legal and beneficial ownership
    Legal ownership does not always reflect the parties’ understanding of beneficial or equitable interests. These matters should be considered early, as disputes regarding ownership entitlements can affect distribution of sale proceeds.

  • Considering third-party equitable interests
    There may be parties not listed on title who assert an equitable interest in the property. These interests should be identified and considered when structuring the proposed Order.

  • Maintaining Trustee independence
    The proposed Statutory Trustee should be independent and free from conflicts of interest. Appointment of an external and impartial professional is generally preferred to ensure fairness and transparency throughout the process.

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