Tenants in Common vs Joint Tenants: Which Should You Choose?

The two ways to co-own property in Australia

Where two or more people own real property together, they hold it either as joint tenants or as tenants in common. The distinction sounds technical but has real consequences on death, on divorce, and when one owner wants to sell.

Joint tenancy: right of survivorship

Joint tenants each own the whole of the property together — not distinct shares. When one joint tenant dies, their interest automatically passes to the surviving joint tenant(s) under the right of survivorship. The interest does not pass through the deceased's will.

Joint tenancy is common between married couples and long-term de facto partners for the family home.

Tenants in common: distinct shares

Tenants in common each own a defined share — 50/50, 70/30, or any other split. On death, that share passes under the owner's will (or intestacy rules) rather than automatically to the co-owner.

Tenants in common is often used by business partners, blended families, and investors pooling capital to buy property.

Changing between the two

You can convert a joint tenancy to a tenancy in common by lodging a transfer or a unilateral severance with the land titles office in your state — no consent from the other owner is required in most jurisdictions. Going the other way requires a formal transfer.

A change in tenure should always be considered alongside your will, superannuation binding nominations and any relationship or shareholders agreement. Envision Legal can help align these documents.

This article contains general information only and does not constitute legal advice. Envision Legal accepts no liability for any loss arising from reliance on this content. You should seek independent legal advice tailored to your specific circumstances. For enquiries, contact Envision Legal.