HARLEM & HARLEM

In the matter of Harlem & Harlem, Bell J of the Supreme Court of New South Wales considered an application for an order for the sale of property pursuant to section 66G of the Conveyancing Act 1919 (NSW). The applicants, Mr and Mrs Harlem, sought the sale of a property held by them and the respondents, Mr and Mrs Harlem, as tenants in common in equal shares. The dispute arose from the breakdown of the marriage between the applicants and the respondents, and the subsequent inability of the parties to agree on the future of the jointly owned property.

The central legal issue before Bell J was whether the circumstances warranted the appointment of a statutory trustee for sale under section 66G of the Conveyancing Act 1919 (NSW). This required the court to determine if there was a "proper reason" for the sale, considering the nature of the co-ownership and the parties' inability to reach an agreement regarding the property's disposition. The court also had to consider whether the applicants had established that the property could not be physically partitioned or divided amongst the co-owners.

Bell J reasoned that the breakdown of the marriage and the consequent inability of the parties to agree on the management or sale of the property constituted a "proper reason" for ordering a sale. His Honour noted that the purpose of section 66G was to provide a mechanism for resolving disputes where co-owners could not agree, and that the circumstances presented were precisely those the section was designed to address. The court found that the property was not amenable to physical division, further supporting the need for a sale.

Consequently, Bell J made orders appointing a statutory trustee for sale of the property and directing the trustee to sell the property and divide the proceeds equally between the parties.