Joint Tenancy vs Tenancy in Common
Joint tenancy means equal ownership with right of survivorship — when one owner dies, their share automatically passes to the surviving owner(s). Tenancy in common allows different ownership shares and each share passes through the owner's estate. The choice matters enormously for couples, investors, and estate planning.
Side-by-Side Comparison
| Attribute | Joint Tenancy | Tenancy in Common |
|---|---|---|
| Ownership shares | Always equal (e.g., 50/50 for two owners) | Can be unequal (e.g., 60/40, 70/30) |
| Right of survivorship | Yes — share automatically passes to surviving owner(s) | No — share passes via the deceased's will or estate |
| Common use case | Married couples, civil unions, de facto partners | Investors, friends buying together, blended families |
| Can you sell your share independently? | Not without severing the joint tenancy first | Yes — each owner can sell or transfer their share |
| Estate planning flexibility | Limited — share bypasses the will entirely | Full flexibility — share can be left to anyone |
| Creditor exposure | A creditor claim can sever the joint tenancy | Creditor can claim only the debtor's share |
| Changing the arrangement | Can be severed to become tenancy in common | Can be changed to joint tenancy if all agree |
Joint Tenancy Explained
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 Explained
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.
Do You Need Both?
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.
Which Should You Get First?
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.
Frequently Asked Questions
Can I change from joint tenancy to tenancy in common?
Yes. A joint tenancy can be 'severed' to become a tenancy in common. This can be done unilaterally by one owner serving notice, or by agreement. Your lawyer can handle the process, which involves registering a transfer at LINZ. Costs are typically $500-$1,500.
Which should first home buyers choose?
Most couples buying their first home together choose joint tenancy for its simplicity and survivorship benefit. However, if one partner is contributing significantly more (e.g., a larger deposit from family help), tenancy in common with shares reflecting contributions may be fairer. Discuss with your lawyer.
Related Terms
Freehold
GlossaryThe most complete form of property ownership in New Zealand, giving the owner full rights to both the land and any buildings on it.
Fee Simple
GlossaryThe legal term for freehold ownership — the most complete form of property ownership available in New Zealand.
Unit Title
GlossaryA form of property ownership for apartments, townhouses, and other multi-unit developments where each owner holds title to their individual unit and shares ownership of common property.
Cross-Lease vs Freehold
CompareFreehold gives you full ownership of land and buildings with no co-owner dependencies. Cross-lease means shared land ownership with restrictions on changes — typically 5-15% cheaper but less flexible.
Unit Title vs Freehold
CompareUnit title is for multi-unit developments (apartments, townhouses) with shared common property and a body corporate. Freehold is standalone ownership with full control. Different products for different needs.
Cross-Lease vs Unit Title
CompareBoth are multi-unit ownership structures, but they work very differently. Cross-lease involves shared land ownership with a flats plan, while unit title has a formal body corporate with a unit plan under the Unit Titles Act 2010. Unit title is the modern standard; cross-lease is a legacy NZ structure being gradually phased out.
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