All Topics / Legal & Accounting / Tenants in Common

Viewing 5 posts - 1 through 5 (of 5 total)
  • jasonlheath
    Participant
    @jasonlheath
    Join Date: 2011
    Post Count: 12
    June 2, 2015 - 2:33 pm

    Five years ago my wife entered into an agreement with her sister to purchase a property, as tenants in common (50/50 split). Their parents are guarantors for the property. Now her sister wants to sell her portion, and I would like to buy it. My question is, is it possible to buy my sister in law’s portion thereby making my wife and I 50/50 owners in the property (as tenants in common)?

    If after the above was completed could my wife and I refinance from tenants in common to a joint tenancy loan structure without any consequence, i.e. stamp duty, etc?

    We went to the bank to ask these questions but they had no idea.

    Thanks in advance,
    Jason.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 2, 2015 - 8:33 pm

    Yes it is possible.

    yes you could change from TIC (owned 50.50) to JT generally without stamp duty. But why would you want to? This is an ownership structure change but will also need consent of your lender as they hold the title deeds.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    jasonlheath
    Participant
    @jasonlheath
    Join Date: 2011
    Post Count: 12
    June 3, 2015 - 11:46 am

    Hi Terry,

    Thanks for the response, yes you have a good point. I suppose there is no good reason to change away from TIC (50/50) with my wife as its the same ownership as JT in any case, however we do want to change from P&I to IO on the loan.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 3, 2015 - 12:11 pm

    One reason you may want JT over TIC is because on the death of one owner the survivor becomes the sole owner automatically, outside the will (this is for JT). Regardless of what the will says the survivor will inherit. This may also reduce the chances of the property being attacked if the will is invalid or if there is an exspouse or others who haven’t been provided for.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    jasonlheath
    Participant
    @jasonlheath
    Join Date: 2011
    Post Count: 12
    June 3, 2015 - 12:37 pm

    Thanks for the further info re: estate planning Terry. Its certainly a valid point if there is no will or an invalid will in place and TIC agreement.

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.