Joint tenants vs tenants in common

In NSW these are the two ways that two or more people can co-own property, and the difference matters most when one owner dies. Joint tenants hold the whole property together as a single undivided ...

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• referenceDefinition: {"term":"Joint tenants vs tenants in common","definition":"In NSW these are the two ways that two or more people can co-own property, and the difference matters most when one owner dies. Joint tenants hold the whole property together as a single undivided interest with a right of survivorship: when one joint tenant dies, their interest passes automatically to the surviving joint tenant or tenants and does not form part of their estate or pass under their will. A joint tenancy is not permanent: a joint tenant can sever it during their lifetime and convert their interest into a tenancy in common. Tenants in common each hold a distinct, undivided share (equal or unequal) that they can sell, mortgage or leave by will independently, and there is no right of survivorship, so a deceased tenant in common's share passes through their estate and under their will. Under section 26 of the Conveyancing Act 1919 (NSW), where an instrument disposes of a beneficial interest in property to two or more people, they are presumed to take as tenants in common unless the instrument expressly provides that they take as joint tenants, which reverses the older common-law presumption in favour of joint tenancy. See also co-buying (joint purchase) and co-ownership agreement.","primarySource":"https://legislation.nsw.gov.au/view/html/inforce/current/act-1919-006#sec.26"}