How your future can be bound by the way you own your joint property
Joint Tenants or Tenants in Common would be the legal jargon that buyers will hear when they purchase a property together. However, how much importance does a buyer place on the different categories of ownership?
Little do buyers know that these categories, in time, will affect the way their property can be divided upon a death or divorce. Let us explore the differences and the affects it can have in such circumstances.
A property held in Tenants in Common will, as the name suggests, have equal or disproportionate common rights. This means that each party can sell, assign or will their share of the property to another person.
A property held in Joint Tenants has a ‘right of survivorship’. This goes to mean that upon the death of one party, the surviving party will automatically have sole ownership of the property. In the event of a divorce, however unless there is a change in title, which will incur further cost, the property cannot be sold, assigned or willed to anyone the parties wish to.
Therefore, to save some future complications, choose wisely and put more thought into the categories of ownership to prevent higher legal cost and duties payable.
If you would like more information on the difference between Joint Tenants and Tenants in Common, feel free to contact our Conveyancing team at firstname.lastname@example.org or call 1300 HATZIS (1300 428 947) .