Joint Tenancy
A form of co-ownership where two or more people own a property together with equal shares, and if one owner dies, their share automatically passes to the surviving owner(s).
What is a Joint Tenancy?
Joint tenancy is the most common way couples purchase property together in New Zealand. The defining feature is the 'right of survivorship' — when one joint tenant dies, their share of the property automatically passes to the surviving joint tenant(s), regardless of what their will says.
All joint tenants must have equal shares and equal rights to the whole property. You can't have a 60/40 split under joint tenancy. If you want unequal shares, you need tenancy in common instead.
Joint tenancy can be 'severed' (converted to tenancy in common) by any owner at any time, without the other owner's consent. This is done by filing a notice with LINZ. Severance is sometimes used in relationship breakdowns or estate planning situations where the right of survivorship is no longer desired.
Why It Matters for Due Diligence
If you're buying with another person, the choice between joint tenancy and tenancy in common has significant legal and financial implications. Joint tenancy means the survivor inherits automatically — this overrides your will. If you want your share to go to someone other than your co-owner (for example, children from a previous relationship), joint tenancy is not the right choice.
Discuss the ownership structure with your lawyer before signing the sale and purchase agreement. This is especially important for blended families, business partners, or friends buying together.
How to Check
The ownership structure is recorded on the certificate of title from LINZ. When purchasing, your lawyer will ask how you want the title registered. If you're buying an existing property, check the current title to confirm the ownership structure.
Frequently Asked Questions
What happens to a joint tenancy property when one owner dies?
The deceased owner's share automatically passes to the surviving joint tenant(s) by right of survivorship. This happens outside the will and probate process. The surviving owner simply needs to register the death with LINZ to update the title.
Can I change from joint tenancy to tenancy in common?
Yes. Any joint tenant can sever the joint tenancy at any time by filing a notice with LINZ. This converts the ownership to tenancy in common with equal shares. You don't need the other owner's consent, though it's good practice to inform them.
Related Terms
Tenancy in Common
GlossaryA form of co-ownership where two or more people own a property in defined shares that can be equal or unequal, and each owner's share passes through their will when they die.
Certificate of Title
GlossaryThe official legal document registered with LINZ that proves who owns a property and records all registered interests affecting it.
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.
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