There two ways in which joint ownership of title can be registered; as Joint Proprietors or as Tenants in Common.
Understanding the difference between the two types of registrations is critical.
When it comes to Estate planning the registration plays an important part in who will be entitled to their share in that property?
There are many factors to consider when determining whether to register your joint ownership in a property as Joint Proprietors or Tenants in Common.
When purchasing property with someone else, it is important to get the right advice.
Joint Proprietors
Joint Proprietorship means all registered proprietors (owners) on the Certificate of Title own the property jointly.
If one of the joint proprietors passes away their share in the property, by the doctrine of survivorship, will immediately transfer the sole interest to the surviving proprietor. To remove that deceased’s proprietor’s name from the Title, a Survivorship Application must be lodged with the Titles Office.
Should a proprietor pass away their joint share in the property will not be dealt with in their Estate. This is important in Estate planning as once an asset forms part of your Estate, it is subject to the risk of a further provision claim against the Estate.
Tenants in Common
Tenants in Common proprietors each own an absolute separate share in the property. The shares can be owned equally or split in some other way eg. 30/70.
When a proprietor passes away their share will be dealt within their Estate.
Unlike Joint Proprietorship, the share does not automatically go to the survivor proprietor.
Tenants in Common is often used when investing with a sibling for example. This ensures that their share is not automatically passed to the sibling and can dealt with in the Estate and passed on to some other party (eg. partner or child).
How can Nevin Lenne Gross can assist?
At Nevin Lenne Gross we can help you determine which type of ownership is best for your circumstances.
We can also assist you in changing your proprietorship on your current Certificate of Title if needed for Estate Planning purposes.
Contact one of our knowledgeable Estate or Property Lawyers to seek further advice.
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