If you buy property with someone else in NSW, you hold it either as joint tenants, where you own it together and the survivor automatically takes the whole property if one owner dies, or as tenants in common, where each owner holds a set share that passes under their will. Decide before you exchange, because changing it afterwards can be slow and costly.
Marcelino sees buyers who do not realise that ownership structure and purchaser names should be sorted before exchange. This guide explains the choice.
The two ways to own together
| Joint tenants | Tenants in common | |
|---|---|---|
| Shares | Equal, undivided | Set shares, which can be unequal (for example 70/30) |
| If one owner dies | The survivor automatically owns it all | The deceased owner's share passes under their will |
| Common for | Couples | Friends, siblings, investors, blended families, unequal contributions |
| Selling your share | Possible, but it ends the joint tenancy | Possible, subject to any co-ownership agreement |
Which one suits you?
- Couples buying a home together often choose joint tenants
- Friends or family buying together often choose tenants in common, so each person's share is protected
- Unequal contributions, for example one person paying a bigger deposit, usually suit tenants in common in unequal shares
- Blended families often choose tenants in common so each person can leave their share to their own children
This is a decision about your estate as well as your purchase. If you are unsure, speak to a solicitor about your will at the same time.
Buying with a friend: get it in writing
If you buy with someone who is not your partner, consider a co-ownership agreement covering who pays what, what happens if one person wants to sell, and how the property is valued if one buys the other out.
Can you change it later?
Yes, but after settlement it usually means registering a new transfer or a severance, and there may be duty and fees. It is far simpler to get it right on the contract and transfer from the start.
Common questions
FAQs
What is the default in NSW if we do not choose?
When two or more people buy without stating how they hold, NSW law generally treats them as tenants in common in equal shares. Always state it clearly.
Can we be tenants in common in unequal shares?
Yes, such as 60/40 or 75/25.
Do I need a will if we are joint tenants?
Yes. Joint tenancy only deals with the property, not the rest of your estate.
City Peak Conveyancing acts on NSW property only. This page is general information, not advice about your circumstances.