Tenants in common vs joint tenancy: what's the difference?

When two or more people buy a property together in Victoria, a question many don't expect comes up: how do you want to hold title? This is one step in our first home buyer guide. The two options, joint tenancy and tenants in common, sound similar but work quite differently, especially when one owner dies or the owners contribute unequally. You decide before settlement; your conveyancer asks, and the choice goes on the transfer documents.

Joint tenancy

All owners hold the property together as a single unit, with no separate shares, each owning the whole jointly. Its defining feature is the right of survivorship: if one owner dies, their interest passes automatically to the survivors by operation of law, outside the will and the estate, regardless of what the will says. For a couple who want the surviving partner to inherit cleanly, with no probate for the property transfer, it's simple. The constraints: shares must be equal (no 60/40), and an owner can't sell their share independently without severing the joint tenancy, which converts it to tenants in common.

Tenants in common

Each owner holds a defined, separate share, equal (50/50) or unequal (70/30, any split), and each is recorded. The key difference is there's no right of survivorship: if an owner dies, their share passes under their will (or intestacy rules), not automatically to the co-owner. That matters, for instance, where a co-owner has children from a previous relationship who may be entitled to a share of their parent's portion. It's commonly used by friends buying an investment together, owners with unequal contributions, people with separate estate-planning wishes, or business partners.

Which the choice really turns on

Most couples don't dwell on what happens if one of them dies, but that's exactly what this choice governs. Under joint tenancy the survivor takes the property automatically, whatever other family claims exist. Under tenants in common the deceased's share goes through their estate, which can take time, involve probate, and depend on the will. A married couple or registered partners who are each other's beneficiaries can reach the same outcome either way, just via a longer process; an unmarried couple without up-to-date wills gets a simpler transfer on death from joint tenancy.

Unequal shares are the other driver. If two friends put in $150,000 and $50,000 and want ownership to reflect it, joint tenancy can't (it requires equal shares); they'd hold as tenants in common at 75/25. The same applies when parents take a small share helping an adult child, or investors contribute different amounts.

Changing it, and the Section 32

You can change the structure later through a transfer of land. Moving from joint tenancy to tenants in common is done by serving a notice of severance, converting it to equal shares that can then be adjusted; moving the other way transfers shares between owners. Both need legal documentation and a transfer fee, and stamp duty may or may not apply depending on the relationship and circumstances, so check with your conveyancer.

The Section 32 shows who the current owners are and how they hold title, useful for spotting complications on a co-owned property, but it won't advise which structure suits your own purchase. That's for your conveyancer, and where it touches your estate planning, your solicitor.

Before you sign

Think it through first: are you and your co-purchaser in an equal or unequal financial position, do you both have current wills consistent with your wishes, is this a home or an investment (investment properties are often held as tenants in common so each owner declares their share of income and deductions, which can matter across different incomes), do you have children from a previous relationship to protect, and are you buying with someone who isn't a spouse or partner? None has a universal answer. Your conveyancer covers the legal side; for the tax angle, talk to an accountant before committing.

Your conveyancer will ask how you want to hold title, so know your answer before the question comes. If you're unsure, joint tenancy is simpler and more common for couples; tenants in common suits unequal contributions or separate estate planning. Either can be adjusted later, but it's easier to get right the first time.

Sources

• Land Use Victoria: Property and land titles information: the Victorian land registry, which records how co-owners hold title (joint tenants or tenants in common).
• State Revenue Office Victoria: Land transfer duty: where duty may apply on a later transfer that changes how title is held.

Sources verified 25 July 2026. How you hold title has estate-planning and tax consequences.