I want to purchase a property with my partner. How many different ways can we collectively hold title to a property?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Neha Sharma, Hillsdale 2036 NSW
- Under property law principles a single property can be owned by more than one person either as joint tenants or as tenants in common.
- Joint tenancy occurs when two or more persons own a property and each owner shares the ownership equally and collectively. If one owner dies the other owners automatically acquire in equal shares the deceased owner’s interest. An owner under a joint tenancy cannot dispose of their interest in the property to another person under a will.
- A tenancy in common occurs where two or more persons own their shares in specific proportions and independently from each other. For example owner A may hold 75% and owner B may hold 25% of the property. When one owner dies their interest in the property is distributed to their beneficiaries under their will or under the laws of intestacy. The surviving owner does not automatically acquire the deceased owner’s interest. A purchaser should discuss with their lawyer what arrangement might best suit their individual circumstances.