Joint Tenancy vs Tenancy in Common

Joint tenancy is the most common ownership structure for couples buying property together in New Zealand. All owners hold equal shares, and the defining feature is the right of survivorship: when one joint tenant dies, their share automatically passes to the surviving joint tenant(s), regardless of what the deceased's will says.

This makes joint tenancy simple and efficient for couples who want the survivor to inherit the property. However, it means you cannot leave your share to someone else in your will. If you want your share to go to children from a previous relationship, for example, joint tenancy is not the right structure.

Tenancy in common allows owners to hold different shares of a property (for example, 60/40 to reflect different financial contributions). Each owner's share is a separate, identifiable interest that can be dealt with independently — sold, mortgaged, or left to beneficiaries in a will.

Tenancy in common is the preferred structure when owners want flexibility in estate planning, when contributions are unequal, or when the owners are not in a personal relationship (e.g., investment partners or friends). It is also used by couples in blended families who want to ensure their share passes to their own children rather than automatically to the surviving partner.

You must choose one or the other when purchasing property with another person. Joint tenancy is typically best for couples who want simplicity and survivor inheritance. Tenancy in common is better when ownership shares are unequal, when you want estate planning control, or when co-owners are not in a personal relationship. Discuss this with your lawyer before purchase — changing later is possible but involves legal costs.

Discuss your ownership structure with your lawyer before signing the sale and purchase agreement. The choice between joint tenancy and tenancy in common should be made based on your relationship, financial contributions, estate planning goals, and any existing wills or trust arrangements. If you have children from a previous relationship, tenancy in common is almost always more appropriate.