In any situation where individuals own property together, there is a
consideration that needs to be made in terms of the ownership structure. There are two major structures for co-owning property: tenants in
common and joint tenancy.
Tenants in common
Tenants in common refer to the shared ownership structure where the shared owners each have an interest in the property, represented by shares which may be equal or not. For example, one owner may have as much as 75% while the other owns the remaining 25%. In most cases, the ownership amount reflects the contribution to the purchase.
With tenants in common, the co-owners retain control over their share of the property and reserve the right to transfer or sell their share to a third party or even give it away in a will.
Property owners have two major rights as Tenants is common;
- The right to transfer ownership: Tenants have a right to transfer ownership of their shares as they see fit; they can sell it or even give it away.
- The right to receive income: If the property is generating revenue, then tenants are entitled to a share of the income proportional to the percentage of their ownership.
When parties own property as joint tenants all owners have equal ownership and interest in the property. A right of survivorship also exists, which essentially means the share passes to the other owner in the event of their death.
Joint tenants are generally husbands and wives or couples. However, this type of ownership can also be used where the right of survivorship is needed.
Unless you specify another structure the law assumes your purchase is a joint tenancy.
Why Tenants In Common Is Perfect For Shared Ownership
There are several advantages to tenants in common;
- It provides the most individual control for all owners.
- Co-owners can hold unequal shares of the property.
- The owners can sell or transfer there share as they please.
- They can make specific provisions in the event of their death.
With the ever-increasing prices of real estate and the growing challenge of owning property, tenants in common is emerging as a popular solution. More and more people are discovering that with co-owning, it is possible to own a property they wouldn’t be able to otherwise, and at far cheaper prices.
TIC increases the buying and selling power of a property owner, it’s easier to own property if you’re contributing only half of the purchase costs.
How TIC Works With Co-Own.com.au
Our website provides potential buyers, sellers, and investors with a platform to co-own a property. Whether you’re buying to occupy or invest, there are opportunities for you to do so with us.