Joint Tenants Or Tenants In Common?
“Joint Tenants” – possess a right of survivorship, that is, the interest of a deceased joint tenant passes to the surviving joint tenant(s).
This option is chosen in most cases by married or defacto couples when buying property.
To create a joint tenancy there must be:
TENANTS IN COMMON
“Tenants in Common” – don’t possess a right of survivorship and on their death their interest passes according to the terms of their Will. If a tenant in common dies intestate and has no will their estate is distributed according to the Wills, Probate and Administration Act 1898.
A tenant in common holds an undivided share in the property and has unity of possession. This means that each co-tenant has an equal right to possession of the whole of the property, but not a right to exclusive possession of any part.
A tenant in common may deal with their respective share as they wish and this will not affect the tenancy of the other co-tenants. Some also employ this structure in equal shares or different splits so as to facilitate income/expense splitting on rental properties and capital gains tax.
It is vital to understand these differences between Joint Tenants and Tenants in Common as you will need to decide which to use before conveyancing begins and before entering into a contract. Zippy Finance work with several highly respected lawyers and conveyancers so if you are thinking of purchasing a property and would like us to put you in touch with one give us a call on 1300 855 022.
Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.