When two or more people buy property together in New Zealand, they must choose how to hold the title — as joint tenants or as tenants in common. This decision affects what happens to each owner’s share if one dies, how shares can be dealt with in a will, and how co-ownership arrangements are structured. The right choice depends on your relationship with the other owners and your estate planning goals.
Joint tenancy: all owners hold equally and on death the property passes automatically to the surviving owner(s), regardless of your will. Tenants in common: each owner holds a defined share that can be unequal, and on death passes under your will. Most co-buying friends or siblings should use tenants in common. Couples often use joint tenancy but should consider their estate planning needs carefully.
Joint Tenancy
How it works
In joint tenancy, all owners hold the property as a single unified whole. There are no individual shares — each owner has an equal, indivisible interest.
Key features
- Equal ownership: All joint tenants hold equally, regardless of deposit or income contribution. A couple where one contributed 70% of the deposit still holds 50/50 in joint tenancy.
- Right of survivorship: On the death of a joint tenant, their interest automatically passes to the surviving joint tenant(s) — without going through the deceased’s will. This happens by law, not by choice.
- No separate share to sell or give: A joint tenant cannot sell or give away “their share” independently (though they can sever the joint tenancy — see below).
- Cannot be left in a will: The right of survivorship takes precedence — you cannot use your will to leave your joint tenancy interest to someone else.
When joint tenancy is appropriate
- Married or de facto couples who want automatic survivorship (property passes to partner without probate delay)
- Where both partners have equal contribution and equal estate planning intentions
- Where simplicity of administration at death is valued
Severing a joint tenancy
Any joint tenant can unilaterally sever the joint tenancy — converting it to tenants in common — by notifying the other owner(s) and registering the change with LINZ. Severance is done by deed and solicitor notification. It does not require the other owner’s consent.
Tenants in Common
How it works
In tenants in common, each owner holds a defined percentage share of the property. Shares can be equal or unequal.
Key features
- Defined individual shares: Your solicitor registers the exact percentage (e.g., 50/50, 60/40, 33/33/34 for three owners).
- No right of survivorship: On death, your share passes under your will (or intestacy law if you have no will). It does not automatically go to the other owner(s).
- Can be sold independently: A tenant in common can sell their share (subject to any co-ownership agreement restrictions on this).
- Can be left in a will: You can leave your share to any beneficiary — your children, a trust, another person.
When tenants in common is appropriate
- Co-buying with non-partners (friends, siblings) — each should be able to leave their share to their own estate
- Unequal contributions — one person contributes 60% of the deposit; tenants in common allows 60/40 registered shares to reflect this
- Second marriages or blended families — each partner wants to be able to leave their share to their own children
- Investment properties — shares can reflect different investor contributions
Shares in tenants in common
Shares can be any percentage that adds up to 100%. Common structures:
- Two buyers with equal deposit: 50/50
- Two buyers with unequal deposit: proportional (e.g., 60/40)
- Three buyers: 40/30/30 or any combination
Comparison Table
| Feature | Joint tenancy | Tenants in common |
|---|---|---|
| Individual share? | No — unified interest | Yes — defined percentage |
| Equal or unequal? | Must be equal | Can be unequal |
| On death | Right of survivorship | Passes under will |
| Can be left in will? | No | Yes |
| Independent sale of share? | Difficult | Yes (subject to agreement) |
| Suitable for couples? | Often yes | Sometimes (for estate reasons) |
| Suitable for co-buyers? | Rarely | Usually yes |
Relationship Property and Co-Ownership
Under the Property (Relationships) Act 1976, property owned by de facto or married partners is “relationship property” after 3 years of coexistence, regardless of how title is held. This means:
- Even if the property is registered as 60/40 in your names as tenants in common, on relationship breakdown it may be treated as 50/50 relationship property
- Joint tenancy does not create any additional relationship property obligation beyond what the Act already creates
If you want to protect a pre-relationship contribution (inheritance, savings), a contracting out agreement (pre-nup) registered with the court is required — not just a particular title structure.
Changing the Structure After Purchase
You can change between joint tenancy and tenants in common after purchase:
- Severing a joint tenancy: Unilateral, by deed and LINZ registration
- Converting tenants in common to joint tenancy: Requires agreement from all owners, transfer of shares, and LINZ registration
- Changing share percentages: Tenants in common can change their registered shares by agreement and LINZ registration (stamp duty/GST may apply depending on circumstances)
Consult a solicitor for any change — there can be tax, relationship property, and estate implications.
Frequently Asked Questions
What is the difference between joint tenants and tenants in common in NZ?
Joint tenancy means all owners hold equally with right of survivorship — on death, the property passes automatically to the other owner(s), not through your will. Tenants in common means each owner holds a defined share that passes under their own will.
Should a couple buying a house in NZ choose joint tenancy or tenants in common?
For most couples, joint tenancy provides simplicity and automatic survivorship. However, if either party has children from a previous relationship, significant pre-existing wealth, or different estate planning needs, tenants in common may be preferable. Get legal advice.
Can unmarried co-buyers be joint tenants in NZ?
Legally yes — but it’s rarely advisable for non-partners. Joint tenancy means if one co-buyer dies, their share goes to the other automatically (even if they’d rather it went to their children or family). Tenants in common is almost always the right structure for non-partner co-buyers.
What happens to a joint tenancy property when one owner dies in NZ?
The surviving joint tenant(s) automatically inherit the deceased’s interest. The solicitor files a survivorship application at LINZ with a copy of the death certificate. No probate is required for the property itself.
Can I change from joint tenancy to tenants in common without my partner’s consent?
Yes — in NZ, any joint tenant can sever the joint tenancy unilaterally. However, changing share percentages in tenants in common requires all parties to agree. Severing during a relationship without discussion may cause significant conflict — get legal advice first.