What is the difference between joint tenants and tenants in common?
admin2016-11-30T12:00:46+10:00Joint Tenants
When one of the joint tenants passes away their share of the property will automatically pass to the surviving joint tenant. Joint tenants can only be held in equal shares. This is used particularly with spouses and domestic partners.
Tenants in common
If one of the tenants in common passes away, their share of the property will be dealt with according to their will. Tenants in common is usually used in a situation where friends or business partners are purchasing a property together.
Tenants in common is also used in a situation where people are purchasing a property in unequal shares. An example of this would be parents assisting a child in a purchase whereby the parents are providing 30% of the purchase price and the child is providing 70%. The property would be held as tenants in common in the shares of 3/10 and 7/10.