Joint Tenancy vs Tenants in Common in Queensland: How Ownership Type Appears on Your Title

Why the Ownership Structure on Your Title Matters More Than You Think

When two or more people buy property together in Queensland, the way ownership is recorded on the title has profound legal and financial consequences. Yet most co-buyers barely glance at this detail before signing.

The two main forms of co-ownership in Queensland are joint tenancy and tenants in common. They look almost identical on paper — both involve multiple names on the same title — but they work very differently when it comes to inheritance, tax, separation, and selling.

This guide explains how each ownership type appears on a Queensland property title, what the practical differences are, and when you might need to change from one to the other.

How Co-Ownership Appears on a Queensland Title Search

When you order a current title search for a Queensland property, the registered owners are listed in the ownership section. For co-owned properties, you will see one of two notations:

• Joint Tenants — the title will state the owners hold as "joint tenants"
• Tenants in Common — the title will state the owners hold as "tenants in common" followed by their respective shares (e.g., "as to one-half share each" or "as to 60/100 and 40/100 shares")

If neither notation appears and multiple owners are listed, the default under Queensland law is tenants in common in equal shares. However, this situation is rare with modern conveyancing practices — the ownership type is almost always explicitly stated.

You can verify the ownership structure of any Queensland property by ordering a current title search through TitleFinder for $74.50 AUD.

Joint Tenancy Explained

Joint tenancy is the most common ownership structure for married couples and de facto partners buying property together in Queensland. Its defining feature is the right of survivorship.

Right of Survivorship

If one joint tenant dies, their interest in the property automatically passes to the surviving joint tenant(s). This happens by operation of law — it does not matter what the deceased person's will says. The property bypasses the estate entirely.

This is both the greatest advantage and the greatest risk of joint tenancy:

• Advantage: Simple and fast transfer on death. No probate required for the property. The surviving owner simply lodges a "Notice of Death" with the Titles Registry to have the title updated.
• Risk: You cannot leave your share of the property to someone else in your will. If you and your partner own as joint tenants and you want to leave your half to your children from a previous relationship, joint tenancy prevents this.

The Four Unities

Joint tenancy requires what lawyers call the "four unities":

1. Unity of possession — all owners have equal right to possess the whole property
2. Unity of interest — all owners hold the same type and size of interest (always equal shares)
3. Unity of title — all owners acquired their interest through the same document
4. Unity of time — all owners acquired their interest at the same time

If any unity is broken, the joint tenancy is "severed" and automatically converts to a tenancy in common.

Tenants in Common Explained

Tenants in common is the more flexible form of co-ownership. It is commonly used by business partners, investors, family members, and blended families.

Key Features

• No right of survivorship — when a tenant in common dies, their share passes according to their will (or intestacy rules if there is no will). It does NOT automatically go to the other co-owner.
• Unequal shares are possible — owners can hold different percentages (e.g., 70/30, 60/40, or any split). This is reflected on the title.
• Independent dealing — each owner can sell, mortgage, or transfer their share independently (subject to any agreements between the owners).

When Tenants in Common Makes Sense

• Investment properties with unequal contributions — if one party contributes 70% of the purchase price, they can hold a 70% share
• Blended families — each partner can leave their share to their own children
• Business partnerships — co-investors who want to maintain separate, transferable interests
• Tax planning — directing rental income proportionally based on ownership shares and individual tax rates

Side-by-Side Comparison

Severing a Joint Tenancy in Queensland

A joint tenancy can be converted to a tenancy in common through a process called severance. In Queensland, this is done by lodging a Transfer (Form 1) with the Titles Registry Office.

Common reasons for severing include:

• Relationship breakdown — separating couples often sever to protect their individual interests
• Estate planning — wanting to leave your share to specific beneficiaries
• Asset protection — separating interests to shield against one owner's creditors
• Tax restructuring — creating unequal shares for tax optimisation

Important: Unilateral Severance

In Queensland, one joint tenant can sever the joint tenancy without the other's consent. They simply need to transfer their interest to themselves as a tenant in common. This is a significant legal right that many co-owners are not aware of.

However, the severing party's share becomes a tenancy in common while the remaining joint tenants (if more than two) continue to hold their shares as joint tenants between themselves.

To verify whether a severance has occurred, order a current title search. The change from "joint tenants" to "tenants in common" will be reflected in the ownership details. The dealing instrument that effected the change can also be obtained through TitleFinder for $91.80 AUD.

Converting Tenants in Common to Joint Tenancy

Going the other direction — converting from tenants in common to joint tenancy — requires all co-owners to agree and lodge a transfer with the Titles Registry. This is less common but sometimes done when:

• De facto partners formalise their relationship
• Co-owners want the simplicity of survivorship rights
• Estate planning objectives change

The transfer must re-establish all four unities, which means the shares must become equal. If the current split is unequal, stamp duty implications may arise on the equalising transfer.

Tax Implications of Ownership Structure

The ownership type on your Queensland property title directly affects how the ATO treats rental income, capital gains, and deductions.

Rental Income

• Joint tenants: Rental income (and expenses) are split 50/50 regardless of who contributed more to the purchase
• Tenants in common: Income and expenses are split according to the ownership shares shown on the title

Capital Gains Tax (CGT)

• Joint tenants: Each owner reports 50% of any capital gain or loss
• Tenants in common: Each owner reports their proportional share

For investment properties, tenants in common with unequal shares can be advantageous if one owner has a lower marginal tax rate. However, the ATO requires that the ownership split genuinely reflects the arrangement — you cannot simply allocate income to the lower-earning partner without a corresponding ownership interest on the title.

What to Check on a Title Search

If you are buying a co-owned property or reviewing your own title, here is what to look for:

1. Ownership notation — does it say "joint tenants" or "tenants in common"?
2. Share proportions — for tenants in common, what percentage does each owner hold?
3. Recent dealings — has there been a recent transfer that might indicate a severance or change in ownership structure?
4. Encumbrances — are there separate mortgages on individual shares (possible with tenants in common)?

A current title search from TitleFinder ($74.50 AUD) will show all of this information. If you need to understand a specific dealing — such as a severance transfer — order the dealing instrument for $91.80 AUD.

Historical Context: Tracing Ownership Changes

If you are dealing with a deceased estate, family dispute, or complex ownership history, a historical title search can reveal how the ownership structure has changed over time. This is particularly useful for:

• Identifying when a joint tenancy was severed
• Tracing transfers between family members
• Understanding how the current ownership split was arrived at
• Supporting legal claims about beneficial ownership

Historical title searches are available from TitleFinder for $86.50 AUD.

Practical Advice for Queensland Property Buyers

Choosing between joint tenancy and tenants in common is one of the most important decisions you will make when buying property with someone else. Here are some general guidelines:

• Married couples with no blended family considerations → Joint tenancy is usually simpler and provides automatic survivorship
• De facto couples or blended families → Consider tenants in common so each partner can direct their share via their will
• Investment partners → Tenants in common with shares reflecting each party's contribution
• Parents helping children buy → Tenants in common can protect the parent's contribution

Always get legal advice specific to your situation. A conveyancer or property solicitor can ensure the ownership structure aligns with your estate plan, tax position, and relationship circumstances.

Order Your Queensland Title Search

Whether you are checking the ownership structure of a property you are buying, reviewing your own title, or investigating a co-ownership dispute, TitleFinder provides fast digital delivery of Queensland title documents.

• Current Title Search — $74.50
• Historical Title Search — $86.50
• Dealing Instrument — $91.80

All searches are delivered digitally, typically within one business day. Contact us if you need help choosing the right search for your situation.