Joint Tenancy vs Tenancy in Common: What is the Difference?

Buying property with someone else is a big decision - financially and personally.

One choice you’ll need to make early is how you’ll hold the property title: as joint tenants or as tenants in common.

Each option works differently and can affect what happens if one owner passes away, how ownership is split, and how the title can be changed later.

Learn more about Qudos Bank home loans.

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What is joint tenancy?

Joint tenancy means each person on the title owns an equal share of the property, no one can hold more than another.

A key feature is the right of survivorship: if one joint tenant dies, their interest automatically passes to the surviving joint tenant(s), rather than to beneficiaries under a will.

This is one reason couples often choose joint tenancy.

For more help buying jointly, read our guide to buying a house with your partner.

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Benefits of joint tenancy

• Right of survivorship simplifies transfer of ownership to the surviving owner(s) if a joint tenant passes away.
• Equal shares by design, which can make the arrangement straightforward to understand and administer.

To understand the lending side of buying property together, see our Home Loan FAQs.

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Ending joint tenancy

Circumstances change. If joint tenants separate, restructure their affairs, or want a different ownership split, they may seek to sever the joint tenancy.

The steps depend on the state or territory, and once severed, the owners become tenants in common.

Consider obtaining legal advice to understand local requirements for your individual circumstances.

For more property‑ownership insights, explore our Home Owning article series.

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What is a 'Tenants in Common' arrangement

A Tenants in Common arrangement is where two or more people co‑own a property, but each person holds their own defined share.

These shares don’t have to be equal — for example, one person might own 70% while another owns 30%. The shares often reflect how much each person contributed to the purchase.

Even though ownership shares can differ, all owners have the right to use and access the whole property. No one has exclusive rights to a particular room or section.

Unlike joint tenancy, there is no right of survivorship under a Tenants in Common arrangement.

If one owner passes away, their share becomes part of their estate and is distributed according to their will, or according to intestacy laws if there is no will.

Tenants in Common is often used by friends, siblings, or other relatives buying together, especially where their contributions differ, or where they want their share to pass to someone other than the co‑owner.

Read more: Common Home Loan Guarantor Questions Answered

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What are the Benefits of Tenants in Common?

The major benefit of Tenants in Common is that you can elect the proportion of shares in ownership that you and the other tenants have.

This offers greater flexibility for individuals looking to invest in property with at least one other person.

Tenancy in Common can be a good choice if you want your share of the property to be left to your chosen beneficiaries through your will, rather than automatically passing to the other owner.

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How do you end a Tenants in Common arrangement?

As Tenants in Common co-own a property in defined shares, each tenant can sell or transfer their share as they wish.

One tenant can also buy out the other tenant or tenants to dissolve the Tenancy in Common in a joint agreement.

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What are the key differences between joint tenancy and tenancy in common?

Here’s the simple version:

• Joint tenants always own equal shares, and the right of survivorship applies. They usually need each other’s consent to sell or transfer their share.
• Tenants in common can own different percentage shares. There is no survivorship, and each owner can generally sell or transfer their share without consent from the others.

Have questions? Get in contact!

Still unsure whether Joint Tenancy or Tenancy in Common is right for you? Contact us today to find out more about these two types of property ownership.

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