Joint tenants or tenants in common: buying with someone in NSW

Joint tenants

Joint tenants own the property together, with no separate shares.

If one owner dies, their interest passes to the surviving owner. This is called survivorship. It cannot be changed by a will.

The title is updated with a notice of death.

Tenants in common

Tenants in common each own a share of the property. The shares can be equal, or unequal, such as 7/10 and 3/10.

There is no survivorship. If one owner dies, their share passes under their will, or under the rules that apply when there is no will.

Which is better?

Neither is better in every case. It depends on your relationship, what each of you contributes, and who you want to receive your share.

1. Couples who want the survivor to keep the home may prefer joint tenants.
2. Friends, siblings, or people who contribute unequal amounts may prefer tenants in common, with shares that match.
3. Blended families may prefer tenants in common, so each share can pass to that person's own children under their will.

Your will should match how you own the property. Read when to update your will.

What if the contract does not say?

The transfer must state whether you hold as joint tenants or tenants in common. Under the Conveyancing Act 1919, where an instrument does not say, the general rule is tenants in common.

We confirm how you want to own the property before the transfer is prepared, so it is stated clearly.

What are the disadvantages of tenants in common?

1. A co-owner's share can pass to someone you did not choose, under their will.
2. Selling a share, or disagreements about selling, can be harder to resolve.
3. A share does not pass to the survivor automatically, so a will matters.

What happens when one of the tenants in common dies?

Their share forms part of their estate. It passes under their will, or under the rules that apply when there is no will.

The surviving owner keeps their own share, but does not receive the other share unless the will gives it to them.

Changing later

You can change from joint tenants to tenants in common after you buy. NSW Land Registry Services states that stamp duty is not required to sever a joint tenancy, or to change all owners to tenants in common in equal shares. A change to unequal shares must be checked.

One joint tenant can end the joint tenancy alone, with notice to the others.

Read adding or removing a name on a property title.

Buying with friends or family

If you buy with someone who is not your partner, put a written co-ownership agreement in place. It should cover each person's share, the loan payments, costs, and what happens if one wants to sell.

Common questions