Have you heard of the First Home Buyers First Home Loan Deposit Scheme?
KEY TAKE OUTS:
- There are several different ways to set up the “Tenancy” on your title when you are a joint owner.
- Your choice will inevitably depend on your personal circumstances.
- It is extremely important to discuss your situation to your Conveyancer, so all parties have their best interests and finances protected.
You may be looking at purchasing property with family, a friend or perhaps your partner. A certificate of title is the legal document that will state that you own the property, however there are several different ways to set up the “Tenancy” on your title when you are a joint owner.
Your choice will inevitably depend on your personal circumstances and the relationship between yourself and who you are purchasing the property with. If you are a married couple your choice will be different to, say, four siblings wanting to purchase a property. Another consideration could also be how much money you have contributed to the purchase of the property.
All of these circumstances can be prepared for and each person can have their best interests and finances protected, so it is extremely important to discuss your situation to your Conveyancer at the time you purchase the property.
Different types of Tenancy include:
- Joint Tenants
- Simply put, this means that upon an owners death, their share in the property will automatically pass to the remaining owners
- Tenants in common
- As opposed to joint tenants, when you own a property as tenants in common, upon death, your share will pass as per your will
- As tenants in common you can choose to have equal shares or you may wish to have unequal shares – this could be to provide a greater interest in the property to an owner who has contributed more funds to the purchase for instance.
The reason deciding on tenancy is so important is because if you make an incorrect choice, in order to rectify it, you will be required to pay stamp duty that is relevant to any change to tenancy.
Coutts Lawyers & Conveyancers can assist you in making the right choice for you. If you would like to discuss your options please contact us.
ABOUT CARINA NOVEK:
As a Licensed Conveyancer, Carina specialises in property law. She has over 20 years experience in conveyancing and is the perfect person to help get you into your first home today!
For further information please don’t hesitate to contact:
This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.