There are two ways you can own a property jointly with another person, these are Joint Tenants or Tenants in Common.
The implication of owning a property as Joint Tenants is that upon either owner’s death, the property immediately vests in the surviving tenant despite what is written in the deceased’s Will. If the property is left to someone other than the surviving tenant, the gift in the Will, will fail. The process of transferring the property to the surviving tenant is quite simple by lodging a form via the NSW Land Registry Services office.
The effect of electing to own a property as Tenants in Common is that upon each owner’s death, the deceased’s share of ownership in the property vests in the beneficiaries named in their Will, and not necessarily the surviving owner of the property. You may choose to own the property in equal shares i.e., 50/50 or in unequal shares such as 30/70. The shares chosen are at your discretion, and may reflect the contributions to the property by each owner. If a property is owned by multiple owners as Tenants in Common, a Grant of Probate will be required in order to transfer the deceased owner’s share in the property to the beneficiaries.
Our experienced Property Law team can provide further information with respect to joint ownership when you are purchasing a property and also regarding altering the tenancy of an already owned property. Please contact us today
This article was published on 20/09/22 and the information is valid only to the date of publishing. This article should be considered merely general and non-specific on the subject matter and is not and should not be considered or relied on as legal, advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.