Property Ownership in Australia: Joint Tenants vs Tenants in Common Explained

When purchasing property in Australia, whether with a spouse, family member, or business partner, one of the most important legal decisions is how the ownership is structured. The two main options are joint tenants and tenants in common, and understanding the difference is essential for effective estate planning, asset protection, and future decision-making.

What Does Joint Tenancy Mean in Australia?

Joint tenancy is a form of property ownership where two or more people hold equal rights to the entire property. There are no defined shares. If one owner passes away, their interest automatically transfers to the surviving owner(s). This is known as the right of survivorship.

Key benefits of joint tenancy:

• No probate required to transfer ownership after death.
• The deceased's share does not form part of their estate.
• Common among married couples and long-term partners.

Example: Lina and John own their home as joint tenants. When Lina passes away, John automatically becomes the sole owner. Her share doesn't pass through her Will - it transfers by law.

What Is Tenancy in Common?

Tenants in common own individual shares in a property. These shares can be equal or unequal, and each owner has the right to leave their share to someone else through their Will. This structure offers more flexibility, especially for estate planning and investment properties.

Key features of tenancy in common:

• Each owner's share forms part of their estate.
• Probate is required to transfer the deceased's share.

Common in blended families, business partnerships, or where ownership proportions vary.

Example: Alex and Jenny own an investment property as tenants in common. Alex passes away and leaves his 60% share to his children. Jenny retains her 40%, and the children become co-owners.

Why Property Ownership Structure Matters for Estate Planning

The way your property is held affects:

• Whether probate is required after death.
• Who inherits the property and how it's distributed.
• Your ability to control your share through your Will.
• Tax implications and long-term planning strategies.

If you're unsure how your property is currently held or whether it aligns with your estate planning goals, it's worth reviewing your title and Will with a solicitor. A small adjustment now can prevent confusion, cost, and disputes in the future.

Need Help with Property and Estate Planning?

At Greigs Legal, we help families and individuals make informed decisions about property ownership, Wills, and estate administration. Need help with property or estate matters? Contact our office on (02) 4647 2968 or submit an online enquiry to arrange a consultation with one of our solicitors.