Knowing Your Rights as a Joint-Tenant or Tenant-in-Common

September 16, 2024    propertysettlementlawyersperthwa
Knowing Your Rights as a Joint-Tenant or Tenant-in-Common

In Australia, one needs to be aware of the legal consequences of co-ownership before investing in a property. The two dominant forms of ownership are tenancy in common and joint tenancy. This guide will discuss the differences between these co-ownership arrangements and your legal rights. Knowing these rights can help you determine what to expect from your joint ownership property lawyer in case of a dispute. Let’s discuss this in detail in this blog!

Joint tenancy: Tenancy in common with the right of survivorship

This is a form of tenancy where the co-owners share equal property ownership. However, this is possible because of the right of survivorship, which is unique to this arrangement. Where a joint tenancy is in force, the stake of a deceased tenant passes automatically to the surviving tenant or tenants. It does this to avoid the probate process while keeping the property registered under the name of the surviving owner.

Key points about joint tenancy:

  • Equal ownership: The parties involved in the joint tenancy are allowed equal shares of the real estate being in question.
  • Right of survivorship: When one of the joint tenants dies, the other joint tenants take the interest of the deceased joint tenant.
  • Probate: The property may save money and time by not going through the probate process.
  • Common usage: Joint tenancy may be used by married or de facto couples.

If you feel denied the right of survivorship or the need to draft a joint tenancy agreement, it is best to contact an estate planning lawyer in Perth.

Tenancy in common: The individual ownership shares

It means that each person who made up the population of a given country had the right to own as many shares as they wanted of a company. It also needs to be realized that co-owners may share the property as tenants in common in equal shares rather than joint tenants.

These shares may not be equal depending on the actual contributions or by other agreed conditions and, therefore, may represent their original contributions. A tenant in common’s share, as provided under the terms of his/her will, dies and becomes his/her property.

Key points about tenancy in common:

  • Shares of individual ownership: Tenants in common share different shares of the property, and each has his or her share.
  • No right of survivorship: If the tenant in common dies, then his/her heirs will take over the interest.
  • Probate: The ownership of the tenant’s share has to be transferred through probate in case of the death of the involved tenant.
  • Flexibility: In matters related to inheritance and estate planning, tenancy in common is more flexible.

Co-ownership: A Guide to your rights

As a co-owner of the property, you have the following rights, irrespective of whether you are a tenant in common or a joint tenant:

  • Possession rights: The property may be held by tenants in common or joint tenants.
  • Right to rent or profit: As per your share in the ownership, you are legally allowed to receive a part of the rent or profit if the property is rented or if it generates income.
  • Right to sell your share: As a general rule, you do not have any restriction on selling your share of the property depending on the agreement that was made at the time of partition and the laws of your region.
  • Right to conflict resolution: In case of a conflict of interests between co-owners, you can take the matter to mediation or the court.

Note: Get in touch with one of the best property settlement lawyers in Perth if you’re facing any denial or objection from the co-owner of these rights.

Tenants in common and their rights to the distribution of property upon deaths

Where one of the tenants in common dies, succession laws apply to the share of the deceased. This also means that their interest in the house transfers to the deceased’s estate and is run according to the will. This means tenants in a common agreement would not assign the interest in the real estate property to the other co-owners.

Selling common tenant shares: Is it possible?

In tenants in a common structure, each tenant or owner enjoys full autonomy regarding his or her portion of the property. They can do this without seeking approval or informing other owners; hence, they can transfer their interest in a particular property to anyone of their choice.

Probate in the case of tenants in common.

When it comes to Tenants in Common, if the owner dies, his or her share of the property goes to the deceased owner’s estate. Hence, the Supreme Court must grant a probate to the next of kin or the beneficiary.

In joint tenancy, the surviving tenant automatically takes the deceased co-owner’s interest in the property; therefore, there is no need for a grant of probate.

Conclusion

In conclusion, we would like to say that it is a huge decision to decide whether to opt for common tenancy or joint tenancy, and the decision has to be made while keeping in mind your circumstances and goals. Understanding what is expected of each party in co-ownership will enable you to avoid hitches and ensure a smooth endowment in property ownership.

However, if you encounter any hitch or legal problem, contact the best joint ownership property lawyer in Perth.

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