Co-Ownership Issues

There are two ways of jointly owning property; as tenants in common or as joint tenants. Although these terms are not familiar it is very important to appreciate the differences between the two and take advice on the most appropriate means of ownership. The differences are as follows:

Beneficial Tenants in Common

• Each party holds separate shares in the property
• The shares need not be on a 50-50 basis and can be in any ratio the parties specify
• If no formal arrangements are made then the shares in the property will be assumed to reflect the parties' financial contribution to the purchase price
• A share in the property under this means of ownership can be gifted by Will and also sold to another party. It does not pass automatically in death to the surviving tenant in common
• It is necessary to avoid any disputes in respect of shares owned in the property by recording such shares in a separate Deed of Trust
• This method is the most appropriate for unmarried or unrelated co-owners
• One party can force sale of property against other owner's wishes

Joint Tenancies

• Generally married couples hold under this method
• There are no separate shares in the property and each party owns the whole
• Most importantly, in the event of the death of one of the co-owners, the deceased co-owner's share does not pass to inheritors under their Will but goes automatically to the surviving co-owner