Should You Buy Property As Joint Tenants Or Tenants In Common?

When buying a property with another person it is important to decide how you will buy it?

If you are going to own 50% each you can purchase as either:

(a)    Joint tenants; or

(b)    Tenants in common in equal shares.

The difference becomes important should one of the owners pass away. If the property is owned in a joint tenancy, the share of the deceased automatically transfers to the surviving party, once a Notice of Death and relevant documentation is filed with the Department of Land and Property Information.

If the property is owned as tenants in common with the deceased party the share of the deceased will be dealt with in accordance with the Will of the deceased and a grant of probate will need to be obtained before the property is dealt with ie. tansferred.

For husbands and wives it is usual to buy the family home as joint tenants as this type of tenancy gives security to both parties. The best means of buying investment properties depends on the individual tax circumstances of the parties.

Platinum Property Law