Joint Tenants vs Tenants in Common: How First Home Buyers Should Hold the Title (Australia 2026)

When two or more people buy a property together, the transfer form asks a question that takes ten seconds to answer and can decide who owns your home after you die: do you hold the title as joint tenants or as tenants in common?

The short version. Joint tenants own the whole thing together, and when one of you dies your share passes automatically to the survivor, whatever your will says. Tenants in common each own a defined share, which can be unequal, and that share passes under your will. As a rough chooser: if you want the survivor to take the whole property automatically, joint tenants does that; if you want defined shares that pass under your will, or your contributions are very different, tenants in common does that. That is a starting point rather than an answer, because the right choice depends on your will, your family and who paid what.

This is general information, not legal advice, and the choice gets registered by whoever acts on your purchase, so raise it early with your conveyancer or solicitor. What follows is sourced to the land registries and the ATO, including the severance procedure in all eight states and territories.

Last updated 15 August 2026. Every registry rule below was checked against the relevant land titles office or practice manual, and the tax treatment against the ATO. We do not sell conveyancing, wills or home loans.

The Short Answer

Both structures give every owner the right to use the whole property. Even a tenant in common with a 10% share cannot be shut out of a room, because the shares are undivided: as the NT Land Titles Office puts it, "none can identify a particular part of the property as being their share". For tenants in common, Landgate adds the exception, noting this holds "unless exclusive use agreements are made between the proprietors".

What Each Structure Actually Means

Joint tenancy is defined by survivorship. The NSW Registrar General's Guidelines state it plainly: "the interest of a deceased joint tenant passes to the surviving joint tenant(s)", so "a joint tenant does not have an interest in the land that can be passed to another through a will unless they become a sole owner". Landgate in WA adds the four unities a joint tenancy needs, all owners taking their interest at the same time, under the same document, with the same interest and equal rights to the whole. Because those interests must be identical, a joint tenancy cannot carry a 70/30 split.

Tenancy in common is defined by shares. There is no survivorship. The NSW guidelines say a tenant in common's interest "passes according to the terms of their will", and that they "may deal with their respective share as they wish and this will not affect the tenancy of the other co-tenants". The ATO agrees they have "the right to sell, mortgage or lease their share of the property... without the agreement of the other tenants". That is the point co-buyers underestimate: your friend can sell their share to someone you have never met. The fix is a written co-ownership agreement alongside the purchase, not a different tenancy type.

What the Title Form Asks, and What Happens If You Leave It Blank

This is not a preference you note down somewhere. It is a field on the registered dealing. The NSW Registrar General's Guidelines require that where two or more people take an interest in land, "that dealing must state whether the persons are to hold as 'joint tenants' or 'tenants in common'. If they hold as tenants in common the share of each person must be stated". The NT says the same: "if nominating tenants in common, you must also state the shareholding applicable".

Here is the part that surprises people, and the reason a single national answer does not exist: what happens when the tenancy is left off the form depends on which state you are in, and the defaults point in opposite directions.

• Western Australia defaults to joint tenants. Landgate states that "where no tenancy is expressed in a Transfer of Land, then Section 60 of the Transfer of Land Act deems the co-proprietors to be joint tenants".
• Tasmania presumes joint tenancy at the title level. Its Land Titles Office says "where tenancy is not stated on a title/titles then joint tenancy is presumed". Note the scope: that is a rule about what the register shows, rather than about a blank field on a lodged instrument.
• The Northern Territory defaults to tenants in common. Its Land Titles Office is unambiguous: "if the instrument does not show whether co-owners are to hold as tenants in common or as joint tenants, the Registrar-General must register the co-owners as tenants in common". That is the opposite outcome to Western Australia on identical facts.
• The ACT points to tenants in common. Its 2026 Land Titles Practice Manual is easy to misread, because the chapter is headed "Presumption as to joint tenants", but the rule it states for a document with no tenancy marked points the other way: "in the absence of any Registry Instrument of tenancy in a document Section 26 (1) of the Conveyancing Act 1919 to 1954 (NSW) establishes a presumption as to tenants in common". A separate provision, section 54(2) of the Land Titles Act 1925, deals with people who are already registered as "joint proprietors" but not as tenants in common, and treats them as joint tenants. The blank-form case is the first rule, not the second.

So the fallbacks split into two camps: Western Australia and Tasmania land on joint tenants, while the Northern Territory and the ACT point to tenants in common. Two co-buyers doing exactly the same thing in Perth and in Darwin end up with opposite ownership structures.

We could not verify published registry defaults for Victoria, Queensland and South Australia from an official source, so we will not guess. The practical point holds everywhere: fill the field in deliberately, because the fallback is a rule you did not choose.

One nuance, because it is where a lot of online advice goes wrong. The title records the legal ownership, which is not automatically the last word on who benefits behind the scenes. The two ACT provisions do different jobs: section 26(1) governs the beneficial interest, deeming a disposition to two or more people "to be made to them as tenants in common, and not joint tenants", while section 54(2) is about how the register reads for people already recorded on it as joint proprietors. If you are contributing very different amounts, document that at purchase rather than argue about it later.

Unequal Shares: How 80/20 and 99/1 Get Registered

Only tenants in common can hold unequal shares: one buyer with a much larger deposit, a parent taking a portion, siblings buying in proportion to what they can afford, or a split weighted towards the lower earner.

The mechanics are fussier than most people expect. In NSW "the shares of tenants in common must always be shown", and "shares may only be shown as fractions (e.g. 2/5 and 3/5)", with the note that "the fractions must have a common denominator, e.g. 3/6, 2/6 and 1/6 not 1/2, 1/3 and 1/6". So 80/20 is registered as 4/5 and 1/5, and 99/1 as 99/100 and 1/100. Percentages suit your own planning, but the title carries fractions.

Two cautions. An unusual ratio is often chosen for a tax reason, and tax reasons attract scrutiny, so get advice first. And the share you register is the share the ATO uses when you sell.

What Happens When One Owner Dies

Joint tenants. The survivor takes the whole property. The ATO confirms that on the death of a joint tenant, "the deceased tenant's interest isn't an asset of their estate". NSW records the survivor by a Notice of Death dealing, Tasmania by an Application to be Registered Proprietor by Survivorship, the NT by an Application to note death by surviving proprietor. It is administrative rather than contested.

Tenants in common. The ATO is equally clear: "when a tenant in common dies, their share in the property becomes an asset of their deceased estate. There is no right of survivorship". The share then transfers to a beneficiary or is sold by the legal personal representative. The ATO's own example has Anita and Noor owning 80/20, and on Anita's death her 80% share passing to her son Isaac under her will.

The planning question follows. If you want your share to go to children from an earlier relationship, to a sibling, or to anyone other than your co-owner, a joint tenancy defeats that intention however carefully your will is drafted. Tenants in common plus a current will is the combination that does what you meant.

Severing a Joint Tenancy: The Procedure in All 8 States and Territories

You are not locked in. A joint tenancy can be converted into a tenancy in common, and in most jurisdictions one owner can do it without the other's permission. What varies is the form, the lodgement path and whether the other owner is told.

A severance only counts once it is registered. The ACT Land Titles Practice Manual records cases involving estranged spouses where a severance was attempted, the person died before registration, and the courts held the joint tenancy had not been severed, so the property passed to the survivor anyway. Landgate warns the same way in Western Australia. If a severance matters, it is urgent, not administrative.

If there is a mortgage on the title, and for most first home buyers there is, severing involves your lender. In NSW the person severing must "send notification of the severance in writing to every registered mortgagee, chargee and covenant chargee recorded in the folio of the Register". The ACT goes further: its practice manual states that where there is a registered mortgage, "the mortgagee consent is required". Your bank does not get a say in how you own the property in every jurisdiction, but it does have to be in the loop, which is one more reason this runs through a conveyancer rather than a form you post yourself.

When the Relationship Ends

Separation does not change your title, and if you are joint tenants, survivorship keeps running while you sort things out. That is why severance comes up so often during a separation: it stops an ex-partner automatically inheriting the whole property if you die before a settlement is finalised.

Severing is a title step, not a settlement. It converts survivorship into shares, and Tasmania's registry states that with two owners a severance makes them "tenants in common in equal shares". It does not decide who gets what, and it does not release either of you from the mortgage. Our guide to property settlement in Australia covers that side.

Capital Gains Tax: The Structure Follows You to the Sale

Your tenancy choice quietly decides how any capital gain is divided years later. The ATO's rule is that "if you share ownership of an asset with others, each person makes a capital gain or loss". From there the structures diverge. Joint tenants "have equal shares in the asset. Therefore, each person has an equal share of any capital gain or loss from a CGT event", so a two-owner joint tenancy splits 50/50 regardless of who funded the deposit. Tenants in common "split the capital gain or loss between them according to their share of ownership". The ATO's worked example has Lui on 20% and Monica on 80% selling for a $200,000 gain, giving Lui $40,000 and Monica $160,000.

Each owner then applies the CGT rules to their own slice. The 50% discount needs the asset owned "for at least 12 months" by "an Australian resident for tax purposes", and for property bought under contract the ATO sets your acquisition date as "the date on the contract, not when you settle", which is when that 12 months starts running. Because each co-owner is assessed at their own marginal rate, an unequal split shifts the tax outcome, which is why those splits get chosen and why they deserve advice.

Two caveats. If the property is your main residence throughout, the main residence exemption may mean there is no gain to divide. And the rules are mid-change: the ATO notes that CGT changes announced in the 2026-27 federal budget "don't apply to Tax Time 2026". Our capital gains tax guide covers what is changing and when, and the CGT calculator models your own numbers.

Stamp Duty, Land Tax and the Cost of Changing Later

Changing your minds later is a registered dealing, so it has a process and sometimes a cost.

Severing is the cheap end. The NSW guidelines record "stamp duty - not required" for the form 01TJ severance, and Land Use Victoria says the unilateral severance transfer "does not need to be assessed for payment of duty by the State Revenue Office". Moving a share between co-owners is different, because that is a transfer of property: the NT Land Titles Office directs you to "take the form to your local Territory Revenue Office to assess and pay stamp duty" before lodging.

Partner exemptions exist but are state-specific. The ACT exempts conveyance duty on a transfer of residential property to your partner where it is your principal place of residence and you end up holding as joint tenants, tenants in common in equal shares, or in shares proportionate to contribution. That is an ACT partner rule, not a general co-owner rule, and it does not cross the border. See our stamp duty guide, and note that structure can also affect land tax once a property stops being your home.

What Your Lender Thinks: Nothing

Here is the disconnect that catches co-buyers out. You can register a 90/10 tenancy in common, and your lender will still hold each of you responsible for 100% of the loan. ASIC's MoneySmart defines a co-borrower as "a person who borrows money jointly with you", then spells out the consequence: "each person is responsible for the loan, so if one of you does not pay, the other person must pay the full amount". The title split governs ownership; the loan contract governs the debt, and it does not divide.

Sit with that before you sign. If your co-buyer stops contributing, the bank comes to you for the whole repayment, not your registered share. How much of the joint debt counts against your capacity next time is a matter for each lender's policy: model it with the borrowing power calculator, and a mortgage broker can tell you how individual lenders treat a co-owned property. Where a parent is helping, going on the title is not the only option, and our guarantor home loan guide compares that route.

Buying With a Friend or Sibling Under the 5% Deposit Scheme

Co-buying with someone who is not a partner is explicitly contemplated by the federal scheme. The Australian Government 5% Deposit Scheme, "formerly known as the Home Guarantee Scheme", lists among its criteria "applying on your own or jointly with one other person (partner, friend, or family member)".

Two attributes matter. It is one other person, so a group of three friends does not fit. And every other criterion still applies, including the location price cap, being an owner-occupier and meeting the lender's credit policy. The scheme changed from 1 October 2025, with the government stating the changes "meant no income caps, no waitlists and no Lenders Mortgage Insurance". Our 2026 grants and schemes guide has the full picture.

Buying with a friend or sibling, tenants in common is worth serious thought: shares can match deposits, and each of you can leave your share to whoever you choose. Pair it with a written co-ownership agreement covering what happens if one of you wants out, cannot pay, or wants to move a partner in.

How to Actually Record Your Choice

The decision is registered in the transfer prepared for your purchase, so raise it when you engage your conveyancer, not in settlement week. Bring three things: how much each of you is contributing, what you want to happen to your share if you die, and whether you want the ability to exit without the other's agreement.

Remember how little is settled until this point. Until contracts are exchanged you can still be gazumped, and it is in that same window that your conveyancer prepares the documents carrying your tenancy choice. For what they do and what it should cost, see our guide to conveyancing fees. If you have not engaged anyone yet, we can connect you with a conveyancer in your state.

Frequently Asked Questions

Can one joint tenant sell the property without the other agreeing?

No. A joint tenant cannot sell the whole property alone, because every owner holds the whole together. What they can usually do is sever the joint tenancy, turning their interest into a share they can then deal with. Registries in NSW, Victoria, Queensland, Western Australia, Tasmania and the ACT all publish a unilateral severance path that does not need the other owner's consent, although Queensland requires you to give the other joint tenant a copy of the transfer or written notice of your intention. South Australia and the Northern Territory do not publish one we could verify, so get advice there. A tenant in common is different: the ATO says they may "sell, mortgage or lease their share" without the others agreeing.

What happens when one owner dies?

It depends on the tenancy. If you are joint tenants, the survivor takes the whole property automatically, and the ATO confirms the deceased's interest "isn't an asset of their estate". If you are tenants in common, the ATO says the share "becomes an asset of their deceased estate", so it passes under the will or is dealt with by the estate's legal personal representative.

Can you change from joint tenants to tenants in common?

Yes, and in most Australian jurisdictions one owner can do it without the other's permission. It is a registered dealing with a different form in each state. In NSW form 01TJ is used where fewer than all the registered proprietors sever, under section 97 of the Real Property Act 1900, while form 01JT is the one where all the proprietors change the tenancy together. Tasmania uses the SJT form under section 63 of the Land Titles Act 1980. A severance only takes effect once registered: the ACT practice manual records cases where an owner died first and the joint tenancy was held not to have been severed.

Can we own a property 80/20?

Yes, but only as tenants in common, because a joint tenancy requires equal interests. The share must be stated on the dealing, and in NSW it must be a fraction with a common denominator, so 80/20 is registered as 4/5 and 1/5 rather than as percentages. The Northern Territory similarly requires that "if nominating tenants in common, you must also state the shareholding applicable".

What are the tax implications of joint tenants versus tenants in common?

Each co-owner is taxed on their own slice of any capital gain. The ATO treats joint tenants as having "equal shares in the asset", so a two-owner joint tenancy splits any gain 50/50 regardless of who paid what. Tenants in common "split the capital gain or loss between them according to their share of ownership". Each owner then applies the CGT rules individually, including the 50% discount after 12 months of ownership.

Does the ownership split change who owes the mortgage?

No. Ownership shares and loan liability are separate. ASIC's MoneySmart states that with a co-borrower, "each person is responsible for the loan, so if one of you does not pay, the other person must pay the full amount". A 90/10 title split does not create a 90/10 debt split, and how much of that joint debt a lender counts when you next apply is a matter for each lender's policy.

What happens if we do not specify a tenancy on the transfer?

It depends where you are buying, and the defaults genuinely conflict. Western Australia deems co-proprietors to be joint tenants where no tenancy is expressed, under section 60 of the Transfer of Land Act, and Tasmania presumes joint tenancy where it is not stated on a title. The Northern Territory and the ACT point the other way: the NT requires co-owners to be registered as tenants in common if the instrument does not say, and the ACT practice manual applies a presumption as to tenants in common in the absence of any registry instrument of tenancy. State the tenancy deliberately rather than relying on a default.

Can friends or siblings buy together under the government 5% deposit scheme?

Yes, within limits. The Australian Government 5% Deposit Scheme allows "applying on your own or jointly with one other person (partner, friend, or family member)". That means a maximum of two applicants, and the other criteria still apply, including the location price cap and living in the property as an owner-occupier. Speaking to a conveyancer early helps make sure the tenancy you register matches what you agreed.

Sources and limits. Registry rules come from the NSW Registrar General's Guidelines, Land Use Victoria Bulletin 224 (December 2023), the Titles Queensland Land Title Practice Manual, Landgate, the Tasmanian Land Titles Office and Recorder of Titles, the 2026 ACT Land Titles Practice Manual and the NT Land Titles Office. Tax treatment comes from the ATO, lending liability from ASIC's MoneySmart. Procedures change, and the Victorian lodgement limitation in particular was described as current in a December 2023 bulletin, so have your conveyancer confirm the present path. This is general information, not legal, tax or financial advice.