As a Conveyancer, I always stress the importance of understanding the manner of holding when purchasing property.
Owning the property with another person as Joint Tenants or Tenants in Common can be the difference in having significant legal and emotional implications in the future.
Conveyancing arranges the transfer to the surviving owner or the beneficiary of the Will, in the unfortunate instance, when a co-owner of property has passed away.
If you own the property as Joint Tenants together, the process of transferring a property into the surviving owner is simple and straightforward requiring only a survivorship application with a death certificate and has no Transfer Duty payable. (currently to date in NSW).
Joint Tenants can minimise legal complications and provides much-needed peace of mind during a difficult time.
However, if you have your property registered together in the manner of holding with Tenants in Common, the share of the deceased must form part of the estate, requiring probate, potentially causing delays, additional costs, and emotional strain.
This case highlights why choosing the right manner of holding is critical.
Choosing the right manner of holding is not just a legal formality when purchasing a property, it is a decision that can ease future burdens and ensure a smoother transition in times of loss.