Joint Tenants vs Tenants in Common
When two or more people buy property together in NSW, they must choose how to hold it. The joint tenants vs tenants in common decision is easy to overlook but has significant consequences, especially when an owner dies.
What is joint tenancy?
As joint tenants, co-owners hold the property together as a single, undivided whole. The defining feature is the right of survivorship: when one joint tenant dies, their interest automatically passes to the survivor, regardless of their will. This is common between spouses and partners.
What is tenancy in common?
As tenants in common, each owner holds a distinct share — equal or unequal — with no right of survivorship. When a tenant in common dies, their share forms part of their estate and passes under their will. This suits owners who want to control who inherits their share, or who contribute unequally.
The key difference — and the difference between joint tenancy and tenancy in common on death
The core difference between joint tenancy and tenancy in common is what happens on death: a joint tenant's interest passes automatically to the survivor, while a tenant in common's share passes under their will. This single point can dramatically change who ends up owning the property — which is why the choice matters in blended families and estate planning. A joint tenancy can also be "severed" and converted to a tenancy in common.
Frequently asked questions
What is the difference between joint tenants and tenants in common?
Joint tenants own together with a right of survivorship, so a deceased owner's interest passes automatically to the survivor. Tenants in common each own a distinct share that passes under their will on death.
Which is better, joint tenancy or tenancy in common?
Neither is universally better — it depends on your goals. Joint tenancy suits couples wanting automatic survivorship; tenancy in common suits those wanting to control who inherits their share.
Can you change from joint tenants to tenants in common?
Yes, a joint tenancy can generally be severed and converted, which can be an important estate planning step.
Choose the right ownership with Leyden Legal
How you hold property is central to both conveyancing and estate planning. Leyden Legal helps buyers and families across Tamworth, Manilla and the North West make the right choice.
Contact Leyden Legal today for advice on property ownership.
This article provides general information only and is not legal advice. The right ownership structure depends on your circumstances. Please seek tailored legal advice before acting.
