Clear advice. Dedicated help. - Visual Legal

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Owning property with someone else — whether a spouse, partner, family member, or business associate — is common in Adelaide and across South Australia. 

The way you structure that ownership matters. It affects everything from day-to-day management to what happens when one owner dies, and it can have real implications for estate planning, tax, and asset protection.

In South Australia, the two main ways multiple people hold title are joint tenancy and tenants in common. These are governed by the Real Property Act 1886 (SA) and common law principles. The choice isn’t just technical — it’s about what best fits your relationship, financial goals, and long-term plans.

Joint Tenancy: Equal Shares with Right of Survivorship

In a joint tenancy, all owners hold the property in equal, undivided shares with the right of survivorship. 

If one owner dies, their share automatically passes to the surviving joint tenants — no probate needed for that portion, and it doesn’t form part of the deceased’s estate.

Key Features

• Ownership must be equal — you can’t have unequal shares.
• All joint tenants must acquire title at the same time (the “four unities”: time, title, interest, possession).
• On death, the share goes straight to survivors — bypassing the will or intestacy rules.

When It Makes Sense

Joint tenancy is popular with couples or close family members who want the property to pass seamlessly to the survivor without probate delays or costs. It’s simple and avoids estate disputes over that asset.

Joint Tenancy – Pros

• Automatic transfer on death — no probate, quicker and cheaper.
• Equal ownership simplifies decision-making and management.
• Reduces estate planning complexity for the survivor.

Joint Tenancy – Cons

• No flexibility in shares — everyone must own equally, even if contributions differ.
• Right of survivorship overrides your will — you can’t leave your share to someone else (e.g., children from a previous relationship).
• Disputes between owners can be messy — one can’t sell their share without breaking the joint tenancy.
• Shared financial risk — creditors or legal issues affecting one owner can impact the property.

Tenants in Common: Separate, Flexible Shares

In tenancy in common, each owner holds a distinct share (equal or unequal) with no right of survivorship. When an owner dies, their share forms part of their estate and passes according to their Will or intestacy rules.

Key Features

• Shares can be unequal (e.g., 70/30 based on contributions).
• Each owner can sell, gift, or will their share independently.
• No automatic transfer on death — the share goes where the Will or law directs.

When It Makes Sense

Tenancy in common suits business partners, investment groups, family members with different financial contributions, or anyone who wants control over who inherits their share (e.g., passing to children from a previous relationship).

Tenants in Common – Pros

• Flexible ownership shares — reflects actual contributions or intentions.
• Full control over your share — sell, mortgage, or will it independently.
• Better for estate planning — you can direct your share to specific beneficiaries.
• Avoids forced equal ownership when contributions differ.

Tenants in Common – Cons

• No automatic survivorship — share goes through estate/probate, which can be slower and costlier.
• Potential for disputes — one owner can sell their share to a third party, bringing in an unknown co-owner.
• More complex management — unequal shares can complicate decisions or sales.

Which Is Right for You? Key Factors to Consider

• Relationship & Trust — Joint tenancy suits close partners who want seamless transfer. Tenants in common better for business or less intertwined relationships.
• Estate Planning Goals — Want your share to go to your children or a charity? Tenants in common. Prefer automatic transfer to survivor? Joint tenancy.
• Financial Contributions — Unequal input? Tenants in common lets you reflect that.
• Risk & Liability — Joint tenancy means shared exposure to one owner’s debts or legal issues. Tenants in common limits it to your share.
• Tax & Asset Protection — Both have implications (e.g., CGT on sale, land tax thresholds). Tenants in common can offer more planning flexibility.
• Future Changes — Life events (divorce, remarriage, new children) may make one structure preferable over time.

How We Can Help

Choosing between joint tenancy and tenants in common is a significant decision. It affects how you manage the property today and what happens tomorrow. 

At Visual Legal, we review your situation, explain the legal and practical differences in plain terms, and help structure ownership to match your goals — whether you’re buying in Adelaide, investing regionally, or planning with family.

Book a free consultation — we’ll meet in our central Adelaide office or via secure teleconference, discuss your circumstances, and guide you toward the right structure. 

No pressure, just clear, practical advice.

Thinking about co-ownership? Let’s get it right from the start — get in touch today.