- Joint tenancy carries the right of survivorship; tenancy in common does not.
- A joint tenant cannot leave the property by will while the joint tenancy continues.
- Tenants in common can hold unequal shares and pass them on through a will.
- A joint tenancy can be severed, sometimes by one owner alone.
Joint tenancy
Under a joint tenancy, the co-owners own the whole property together. There are no separate shares, so it is not strictly accurate to say each spouse owns 50%.
Its central feature is the right of survivorship. When one joint tenant dies, their interest passes automatically to the surviving joint tenant or tenants, whatever the deceased's will says. For example, if a married couple own their home as joint tenants and one dies, the other normally becomes the sole owner.
Joint tenancy is common among married couples who want the survivor to keep the home.
Tenancy in common
Under a tenancy in common, each owner holds a distinct share, which can be equal or unequal, for example 70:30. There is no right of survivorship. When one owner dies, their share becomes part of their estate and is distributed under their will or, without a will, under the intestacy rules.
This structure is often used where owners contribute different amounts, by investors or business partners, and by people who want their share to go to particular family members, such as children from an earlier marriage.
Choosing between them
Joint tenancy may suit owners who:
- Are buying with a spouse and want the survivor to take the whole property.
- Do not need their contributions recorded as separate percentages.
Tenancy in common may suit owners who:
- Contribute different amounts and want this reflected on the title.
- Want their share to pass under their will.
- Are buying with someone other than a spouse.
The decision should ideally be made at the time of purchase and considered together with any will, rather than treated as a box to tick on a form.
Divorce and creditors
How the title is held does not decide how a matrimonial home is divided on divorce. The Family Justice Courts look at the parties' financial and non-financial contributions, so property held 50:50 or as joint tenants may still be divided differently.
Joint tenancy also does not protect a home from creditors. If one owner is made bankrupt, their interest vests in the Official Assignee or a private trustee, who can sever the joint tenancy and apply for the property to be sold, with the bankrupt owner's share going towards the debts.
Changing a joint tenancy to a tenancy in common
A joint tenancy can be 'severed', turning it into a tenancy in common. Under the Land Titles Act, a joint tenant can do this by signing an instrument of declaration in the approved form, serving a copy on the other joint tenant or tenants personally or by registered post, and registering it with the Singapore Land Authority. The other owners do not necessarily have to agree.
Severance by one owner generally produces equal shares based on the number of joint tenants, so two joint tenants would each hold half. Moving to unequal shares, such as 90:10, is a transfer of an interest rather than a simple severance and may have CPF, financing and stamp duty consequences. HDB flats are also subject to HDB's own rules.
After severance, the right of survivorship no longer applies to the severed share, so it is sensible to review your will at the same time.
A lawyer can review your situation and explain your options.
This article is general information on Singapore law and is not legal advice. Rules and agency policies change, and every situation is different. For advice on your own circumstances, speak with one of our lawyers.
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