Tenants in Common or Joint Tenancy: Difference Explained
When there is more then one party purchasing a property the decision needs to be made as to how the parties will own the property, Joint Tenancy or Tenants in Common.
Joint Tenancy of a property is when the parties own the property in equal shares. When one of the parties passes away, their share of the property is automatically given to the surviving party. The deceased share of the property is transferred to the other party by way of an Application by Surviving Proprietor document. The majority of married or long term de facto partnerships usually choose the Joint Tenancy option.
Tenants in Common is when each party wish to leave their share of the property to a beneficiary as outlined in their Will. If the deceased party does not have a Will then their share of the property is passed via Victorian intestacy laws. Ownership as Tenants in Common usually occurs when people with children enter second marriages, people who contribute different amounts of money to the purchase of the property or people purchasing an investment property.
It is imperative that all people purchasing property or own property should have a current Will in place so that their biggest asset is passed to their loved ones. We Care Conveyancing is associated with Provey Law and they can assist with your needs in relation to a Will if required.