When buying property with another person in Adelaide or anywhere in South Australia, one of the most important decisions you’ll make is how you legally own the property.
The two main ownership structures are:
Joint Tenants
Tenants in Common
While they might sound similar, they have very different legal and financial implications.
What is Joint Tenancy?
With joint tenancy, all owners hold equal ownership of the property. The key feature is something called the Right of Survivorship.
What does that mean?
If one owner passes away:
- Their share automatically transfers to the surviving owner(s)
- It does not form part of their estate
- It cannot be left in a will
Example:
A couple buys a home as joint tenants. If one partner dies, the other automatically becomes the sole owner.
Best suited for:
Married or de facto couples
People who want ownership to pass automatically
What is Tenancy in Common?
With tenants in common, each owner holds a separate share in the property. These shares can be:
- Equal (50/50)
- Unequal (e.g. 70/30)
Key difference:
There is no right of survivorship. If one owner passes away:
Their share becomes part of their estate
It is distributed according to their will
Example:
Two friends buy an investment property 60/40. If one dies, their 60% share goes to their nominated beneficiary—not the other owner.
Best suited for:
Friends or siblings buying together
Investment properties
Buyers contributing different amounts
Which Option is Right for You?
There’s no one-size-fits-all answer—it depends on your situation.
Choose Joint Tenants if:
- You want a simple ownership structure
- You want the property to pass automatically to the other owner
- You’re buying with a partner
Choose Tenants in Common if:
- You’re investing with others
- You want to control who inherits your share
- You’re contributing different amounts
Can You Change Ownership Later?
Yes—you can change from joint tenants to tenants in common through a process called severing the joint tenancy.
However, it’s important to get legal advice before doing so, as it can affect:
- Estate planning
- Tax implications
- Your overall ownership structure
Why This Decision Matters
Choosing the wrong ownership structure can lead to:
- Disputes between owners
- Unexpected outcomes when someone passes away
- Complications in estate planning
Getting it right from the start can save significant time, cost, and stress.
Need Advice on Property Ownership in South Australia?
At Beltana Conveyancing, we help buyers across South Australia choose the right ownership structure and guide them through every step of the conveyancing process.
Whether you’re buying your first home, investing, or purchasing with family or friends, we can make sure everything is set up correctly from day one.
