What happens if I own the property as “tenants in common” and want to sell?
Tenants in common is a type of co-ownership where two or more people own separate interests in a parcel of land or in property (which may be an equal or unequal share).
For example, John and Lucille are brother and sister and decide to buy a property together. John takes on 60 per cent of the loan and Lucille 40 per cent. They own the property as tenants in common with John owning 60 per cent and Lucille owning 40 per cent which is reflective of each person's share of the loan.
The REIQ recommends that anyone entering into a co-buying arrangement have a legally prepared document such as a Deed of Trust so all parties have the same intentions and goals.
This document could outline factors such as allowing the other party to have the first buying option if one party wishes to sell.
It is vital that all parties have the same intentions and goals and a legally prepared document – such as a Deed of Trust – is advisable for anyone entering into a co-buying arrangement.
To find a solicitor contact the Queensland Law Society.
