Joint Tenants vs Tenants in Common Australia — Key Differences Explained
When two or more people buy property together in Australia, they must choose how to hold the ownership: as joint tenants or as tenants in common. This choice has significant implications for estate planning, relationship breakdown, and how the property passes on death.
Joint Tenants
Joint tenancy means all co-owners hold the property together as a single legal unit — no individual has a separately identifiable share. The key feature is the right of survivorship: if one owner dies, their ownership automatically passes to the surviving owner(s) — regardless of what the deceased’s will says.
Key features:
- Equal ownership implied (cannot hold 60/40 as joint tenants)
- On death: ownership passes automatically to the survivor (does not go through the deceased’s estate)
- Cannot leave your share of the property to anyone else in your will
- Cannot sell your share independently (the joint tenancy would be severed)
Most common for: Married or de facto couples purchasing the family home together.
Tenants in Common
Tenancy in common means each co-owner holds a separately defined share of the property — which they can sell, gift, or leave to whoever they choose in their will. The shares can be unequal.
Key features:
- Shares can be equal (50/50) or unequal (e.g., 70/30, 60/40)
- On death: the deceased’s share passes according to their will (or intestacy rules if no will)
- Each owner can sell, mortgage, or deal with their own share independently
- One owner can apply to have the property sold (partition) if the co-owners cannot agree
Most common for:
- Property investors co-buying an investment property
- Friends or siblings buying together
- Second marriages where each partner has children from prior relationships
- Buyers with unequal financial contributions wanting to reflect this in ownership
Comparison Table
| Feature | Joint tenants | Tenants in common |
|---|---|---|
| Share type | Equal — undivided whole | Separate, definable share |
| Can shares be unequal? | No | Yes (e.g., 70/30) |
| On death | Automatic right of survivorship | Passes under will or intestacy |
| Can will direct your share? | No | Yes |
| Can sell your share independently? | No (severs joint tenancy) | Yes |
| Asset protection from creditors | Limited — survivor’s interest is protected; deceased’s is not | Individual share is at risk |
| Suitable for couples? | Yes — standard choice | Yes — if estate planning needs it |
| Suitable for investors or friends? | Rarely | Yes |
Estate Planning Implications
Joint tenants — simplicity but no control
Joint tenancy is the simpler choice for couples who want automatic transfer on death — avoiding the delays of probate. However, it removes the ability to direct your share in your will.
Risk for second marriages: If you own a property as joint tenants with a new partner and die first, your share goes entirely to the new partner — your children from a prior relationship receive nothing from that property. Tenants in common with a will allows you to direct your share as you choose.
Tenants in common — flexibility with planning
Tenants in common gives each owner full control of their share through a will. A couple can hold as tenants in common with wills that protect each other’s interests while also protecting children from prior relationships.
Mortgage Implications
For the lender, both joint tenants and tenants in common result in all named owners being jointly and severally liable for the full mortgage debt — regardless of their ownership percentage. If you hold 30% as a tenant in common, you are still fully liable for the entire mortgage.
This means:
- If your co-owner stops paying, you are responsible for the full loan
- Your credit file will be affected if repayments are missed, regardless of your ownership share
- Lenders assess all co-borrowers’ incomes and debts when calculating serviceability
Can You Change From Joint Tenants to Tenants in Common?
Yes — this is called severing the joint tenancy. It can be done unilaterally (one owner can sever without the other’s consent) by registering a document with the land registry office. This creates a tenants in common arrangement (usually equal shares unless otherwise specified).
Severing the joint tenancy does not require refinancing the mortgage. However, it may have stamp duty implications in some states — speak with a solicitor.
Frequently Asked Questions
Which is more common in Australia?
Joint tenancy is more common for couples purchasing a family home. Tenants in common is more common for investment properties, co-buyers with unequal contributions, or where estate planning requires flexibility.
Do we have to decide at the time of purchase?
Yes — you specify the ownership structure when the title is registered. You can change it later (sever the joint tenancy or restructure), but this may have legal and tax costs.
Can one owner sell without the other’s consent?
Joint tenants: Generally no — a sale typically requires both parties to agree. However, one joint tenant can sever the joint tenancy first. Tenants in common: In theory, each owner can sell or deal with their share independently — but in practice, forcing a sale requires a court application for partition.
Related Guides
- Co-ownership Agreements — Protecting Yourself
- What Happens to a Joint Mortgage When You Separate?
- Transferring Property to a Family Member
- Probate and Property Transfer — What Happens After Death
- Property Ownership Structures Hub
This article provides general information about joint tenancy and tenancy in common in Australia. Legal and tax implications vary by state and individual circumstances. Speak with a solicitor before choosing your ownership structure. For mortgage advice, find a licensed broker through MoneySmart.