HOW A PROPERTY CAN BE OWNED - JOINT TENANTS VS TENANTS IN COMMON

When you buy a property with one or more people, your solicitor, conveyancer or real estate agent will ask how you would like to own the property with one another. The two options are ‘joint tenants’ and ‘tenants in common’. The way you own your property can affect your options when drafting your Will and what happens with your property when you pass away.

JOINT TENANTS

To own a property as joint tenants, two or more people will own the entire property together. This means that there is no split of the property ownership, such as 50/50 or 60/40, and all registered proprietors will own 100% of the property together. Upon the death of one of the registered proprietors, the surviving registered proprietors are automatically entitled to the property and they will need to engage a solicitor or conveyancer to assist with the transfer of title. This will continue to occur until there is only one registered proprietor remaining, as they will then become the sole owner of the property.

Upon the death of the last registered proprietor, the property can then be distributed in accordance with their Will or laws of intestacy (the laws concerning those Estates where a person passes away without a Will). It is important to note that when you own the property as joint tenants, and you are not the last person to die, the property will go to the surviving owners, not in accordance with your Will or laws of intestacy.

TENANTS IN COMMON

To own a property as tenants in common, two or more people will need to own the property in percentage shares, such as 50/50, 60/40, or 70/30. The percentage someone owns is generally determined when the property is purchased or transferred to the owners. In this case, when a registered proprietor dies, their share of the property is distributed in accordance with their Will or the laws of intestacy. This means that the surviving owners will become co-owners with new people or they may all decide at that point in time to sell the property.

YOUR NEXT STEPS

VIVMAR Lawyers can assist you with your property needs by:

• Advising how you own your property and the options available to you.

• Changing the property title from joint tenants to tenants in common, if you wish to gift your portion of the property to another person in your Will.

• Assisting with the transfer of property when a property owner passes away.

• Including provisions in your Will with regards to your property.