Joint tenancy

Joint tenancy

A house may be owned solely by one person or jointly by several people. A co-owner of a property need not be a family member, and two or more friends can share ownership. The concept of joint tenancy refers to a special form of ownership in which two or more tenants are equally responsible for and benefit from real estate. 

What is joint tenancy? 

When two or more persons jointly hold a piece of property, they are each given equal rights and responsibilities. This legal arrangement is known as joint tenancy. Married and unmarried couples, friends, family members, and co-workers can establish joint tenancies.  

Due to the so-called right of survivorship created by this legal arrangement, the ownership of the property passes straight to the surviving party upon the death of a deceased owner without going through the probate or court systems. 

Understanding joint tenancy 

Joint tenancy gives two owners equal ownership of a property rather than just a percentage of it. This co-ownership agreement creates a right of survivorship, meaning that if one owner passes away, their interest will automatically pass to the other co-owner without going through court or probate, which is a potentially drawn-out procedure when a will is legally recognised.  

Joint renters are equally responsible for the entire property and receive equal benefits. Both owners are entitled to an equal portion of the profit whether the property is rented or sold. Also, each co-owner is accountable for expenses like mortgage payments and property taxes. The costs and possible debts of the other party are all equally owed by the other parties if one party does not fulfil their financial responsibilities. 

How does joint tenancy work? 

Often connected to real estate, joint tenancy is a type of property ownership. A deed is a written document that is created by two or more persons coming together at the same time. These parties could be family members, close friends, or even coworkers.  

They share the advantages since each participant has a claim to the property. Each participant is entitled to a 50% share of the profits if they decide to sell the house or rent it to someone else. But, their connection also implies that they share equal financial responsibility for the home’s upkeep, including the mortgage, property taxes, and maintenance. The other party must take responsibility if one side doesn’t fulfil its financial responsibilities. 

Advantages and disadvantages of joint tenancy 

The following are the advantages of joint tenancy: 

  • The main advantage of shared tenancy is that it lowers the cost of homeownership. Co-tenants have an advantage when applying for a mortgage thanks to joint tenancy, which allows them to divide the down payment. 
  • Co-tenants gain from the possibility to circumvent probate, the drawn-out legal procedure that the court system utilises to validate wills because joint tenancy includes the right of survivorship. Regardless of whether the decedent made a will, the surviving co-tenant has instant access to their parts of the property rather than going through probate. 
  • Joint tenancy permits co-owners to divide all obligations for debt repayment, upkeep, and rental of the property. Each party is motivated to contribute to protecting their investment because co-tenants own equal portions of the property. 


The following are the disadvantages of joint tenancy: 

  • The other parties to the agreement are responsible for making all mortgage payments and preventing the property from defaulting if a co-owner loses employment or encounters financial difficulties. 
  • Difficulties may also develop if the dynamic between co-tenants changes. It might be difficult to resolve disputes because everyone must agree on all decisions involving the property. Without the express consent of the other co-tenants, no one may sell the property or their portion of the land. Also, because of the rights of survivorship, only the final surviving co-tenant may leave the asset to their heirs. 

Examples of joint tenancy 

Let’s look at the following example of joint tenancy to understand the concept better. Suppose Yoko and John (the joint tenants) purchase an apartment under the terms of their joint tenancy avgreement. As a result, the agreement grants them equal estate rights, interests, and obligations. Both parties are equally responsible for any potential debt settlement about liabilities.  

Neither Yoko nor John may sell the apartment without one another’s permission. Following the rights of survivorship, John will unquestionably be the lawful owner of the apartment following Yoko’s passing and vice versa. The shares are subsequently given to the heir by the still-alive co-tenant. They must sign the tenancy-in-common agreement to break their joint tenancy by transferring their shares to a new co-tenant. 

Frequently Asked Questions

Co-owners have the right to dwell under a kind of co-ownership called Joint Tenancy with the Right of Survivorship. It implies that the surviving owners will inherit their share of the business if an owner passes away. 

The prospective tenants must state their joint tenancy on the title document or deed of the property they are sharing to create a joint tenancy with rights of survivorship. They would also state that they hold the property “as joint tenants with right of survivorship” while listing their names on the title. 

An ownership arrangement known as a tenancy in common involves multiple owners holding varied or equal property shares. A legal phrase used to describe an agreement that outlines the ownership rights and interests of two or more co-owners of real estate is called joint tenancy. 

If you share property ownership with another person and the title document demonstrates that the owners are joint tenants, you can sever the joint tenancy. 

The disadvantage of joint tenancy ownership is that some people might buy real estate to live out their lives and then leave it to their loved ones or children after they pass away. Joint tenants cannot transfer their stake following a death. They merely stop being the owner of any interest in the property. 

Related Terms

    Read the Latest Market Journal

    Back in Business: The Return of IPOs & Top Traded Counters in March 2024

    Published on Apr 17, 2024 410 

    Start trading on POEMS! Open a free account here! At a glance: Major indices continue...

    Weekly Updates 15/4/24 – 19/4/24

    Published on Apr 15, 2024 68 

    This weekly update is designed to help you stay informed and relate economic and company...

    From $50 to $100: Unveiling the Impact of Inflation

    Published on Apr 12, 2024 151 

    In recent years, inflation has become a hot topic, evoking strong emotions as the cost...

    Japan’s Economic Resurgence: Unveiling the Tailwinds Behind Nikkei 225’s Record Leap

    Published on Apr 11, 2024 85 

    Source: eSignal, Intercontinental Exchange, Inc. In the heart of Japan’s economic landscape, the Nikkei 225...

    Weekly Updates 8/4/24 – 12/4/24

    Published on Apr 8, 2024 109 

      This weekly update is designed to help you stay informed and relate economic and...

    What Makes Forex Trading Attractive?

    Published on Apr 2, 2024 191 

    In a world where the click of a button can send goods across oceans and...

    Weekly Updates 1/4/24 – 5/4/24

    Published on Apr 1, 2024 98 

    This weekly update is designed to help you stay informed and relate economic and company...

    How to soar higher with Positive Carry!

    Published on Mar 28, 2024 137 

    As US Fed interest rates are predicted to rise 6 times this year, it’s best...

    Contact us to Open an Account

    Need Assistance? Share your Details and we’ll get back to you


    This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

    An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

    Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

    Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

    The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.  

    The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

    The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

    This advertisement has not been reviewed by the Monetary Authority of Singapore.  


    Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
    250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
    Tel: (65) 6230 8133 Fax: (65) 65383066