Fact Sheet: Joint Tenants vs Tenants in Common

Fact Sheet: Joint Tenants vs Tenants in Common

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Joint Tenants vs Tenants in Common

Author: Bec Bradfield

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3 min read

6 May 2026

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    Key Takeaways
  • Choosing between joint tenants and tenants in common determines how control, inheritance, and financial risk are shared, making it a critical decision that should align with your relationship, goals, and estate planning strategy.
  • Ownership structures can be changed later, but doing so typically involves legal processes, costs, and agreement between owners, so it’s best to get it right from the start with professional advice.
  • The choice between joint tenants and tenants in common affects survivorship rights, estate planning, and how ownership reflects financial contributions, so it must align with your personal and financial intentions.
  • Ownership structure alone may not capture the full financial arrangement and can carry tax implications, so proper documentation and professional legal and financial advice are essential.

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When purchasing a property with another person, one of the most important decisions you will make is how you own the property. Understanding how property ownership impacts control, succession and risk is critical.

The two most common ownership structures are Joint Tenants and Tenants in Common. While both give each owner legal rights to the property, they operate very differently, particularly when it comes to estate planning, asset protection and what happens if one owner passes away.

Choosing the right structure depends on your personal circumstances, including your relationship with the co-owner, financial contributions, and long-term intentions for the property.

Why Does Your Ownership Structure Matter?

Your choice of ownership will impact:

  • Who controls the property during your lifetime
  • What happens to your share if you pass away
  • How your estate plan operates
  • Asset protection and risk exposure
  • Potential tax outcomes, including Capital Gains Tax (CGT) implications

Whether you choose to hold a property as joint tenants or tenants in common depends on your intentions, such as who you intend to inherit your share if you pass away and whether the property will be your home or an investment. Addressing these considerations helps ensure your ownership structure aligns with your broader strategy. We recommend seeking legal and financial advice to ensure it meets your intentions prior to signing a contract.

Changing Your Ownership Structure

Property ownership isn’t fixed. Owners can change from joint tenancy to tenancy in common or vice versa.

Making this change often requires:

  • Formal legal documentation
  • Agreement from all co-owners (depending on the scenario)
  • Payment of the applicable registration fees and stamp duty (depending on the scenario)
  • Lodging the updated ownership with the relevant land titles registry These changes are often prompted by events such as marriage, separation, financial planning, or other changes in personal circumstances.
Joint Tenants vs Tenants in Common Diagram
Joint Tenants vs Tenants in Common Table

Important Considerations

  • Right of Survivorship (Joint Tenants) - If one owner passes away, their interest automatically transfers to the surviving owner(s), following notification to the relevant land titles registry, regardless of any Will.
  • Estate Planning (if Tenants in Common) - Your share can be distributed according to your estate plan, making this structure more suitable where succession planning is important.
  • Unequal Contributions - Where parties contribute different amounts, a tenants in common structure may better reflect financial reality.
  • Asset Protection and Documentation - Ownership on title may not reflect actual financial contributions. In some cases, additional agreements (such as loan arrangements) may be required to properly document intentions.
  • Tax Implications - There may be CGT implications depending on the ownership structure. You should seek accounting or financial advice. Contact our Property team to ensure your ownership structure is simply strategic and fit for purpose.

How Hillhouse Legal Partners Can Help

At Hillhouse Legal Partners, we provide clear, practical legal advice to ensure your property ownership structure aligns with your legal, financial and personal objectives.

We regularly assist clients with:

  • Structuring property ownership arrangements
  • Reviewing and advising on co-ownership risks
  • Aligning ownership with estate planning strategies
  • Preparing supporting legal agreements where required

Need Advice Before You Purchase?

Before deciding on an ownership structure, it’s important to seek guidance from a legal professional who can assess your individual situation and draft the necessary documents to ensure the co-ownership agreement is clear, comprehensive, and legally binding. Choosing the right structure from the outset is critical, as selecting the wrong ownership arrangement can have long-term consequences.

The information on this fact sheet is general guidance only and is not legal advice. You should seek professional advice tailored to your circumstances.

Related Posts:
New Seller Disclosure Obligations Commence 1 August 2025 – What You Need to Know

New Seller Disclosure Obligations Commence 1 August 2025 – What You Need to Know

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New Seller Disclosure Obligations Commence 1 August 2025 – What You Need to Know

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3 min read

29 May 2025

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    Key Takeaways
  • New laws from 1 August 2025 require Queensland residential property sellers to provide a signed Seller’s Disclosure Statement before contract signing.
  • Failure to comply can result in contract termination, full refund to the buyer, and potential legal claims.
  • Agents can assist, but accuracy, timing, and completeness are critical to ensure a valid contract.
  • Early legal advice is essential to prepare a compliant Disclosure Statement and protect your transaction.

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From 1 August 2025, Queensland will introduce a new statutory seller disclosure regime that significantly reshapes the landscape for residential property sales across the state. Under the new laws, sellers will be required to provide prospective buyers with a Seller’s Disclosure Statement before the buyer signs the contract of sale.

What is the Seller’s Disclosure Statement?

The Seller’s Disclosure Statement is a formal, legally mandated document that outlines key information about the property being sold. It is designed to provide buyers with a clear and accurate picture of the property prior to entering a contract —reducing the risk of hidden issues and shifting the burden away from the buyer to conduct extensive investigations.

The Statement must be signed by the buyer before they sign the contract and must be accompanied by a prescribed list of certificates and searches. These include (but are not limited to):

  • Current title search
  • Registered plan
  • Details of registered and unregistered encumbrances
  • Details of unregistered leases or private agreements (written or verbal)
  • Contaminated land search (where applicable)
  • Pool safety certificate (if relevant)
  • Local authority road searches
  • QCAT proceedings search
  • Heritage listing information
  • Tenancy agreements
  • Current rates and water notice amounts
  • Body corporate information, including Community Management Statement (CMS), if applicable

Put simply, the Seller’s Disclosure Statement must be comprehensive, accurate, up-to-date, and complete.

Why Is This Change Being Introduced?

Historically, Queensland has followed a ’buyer beware’ approach—placing the onus on the buyer to uncover issues by conducting searches before or after signing the contract. That approact will no longer suffice under the new laws.

The new disclosure regime reverses this position, placing a statutory obligation on sellers to proactively disclose relevant information. Failure to comply carries serious consequences.

What Happens If Sellers Get It Wrong?

If a seller fails to provide a valid and complete Seller’s Disclosure Statement before the contract is signed, the buyer has the right to:

  • Terminate the contract at any time before settlement
  • Receive a full refund of the deposit and other monies paid
  • Potentially claim compensation for losses caused by the non-disclosure

Importantly, there is no ability to contract out of the requirement. Even if a buyer agrees to waive their right to receive the Statement, such provisions are void and unenforceable.

While limited exemptions apply (such as transfers between related parties), most residential property transactions will be subject to the new regime and must comply.

What Does This Mean for Agents?

Agents play a pivotal role under the new regime. A seller may authorise their agent to prepare and provide the Disclosure Statement on their behalf—but timing, accuracy, and completeness are critical.

  • No Disclosure Statement = No valid contract
  • Incorrect Statement = Risk of termination and legal consequences
  • Outdated Statement = Delays, disputes, or grounds for termination

This change highlights the importance of early preparation and collaboration between sellers, agents, and legal representatives.

How Can We Help?

We understand that the new disclosure regime is extensive and introduces increased responsibilities for both sellers and agents. Our experienced property law team is here to help you navigate the process—from preparing compliant Seller’s Disclosure Statements to ensuring all necessary certificates and searches are in order from the outset.

Avoid unnecessary risk and delays—Let us help safeguard your property transaction.

If you need further information or support preparing a compliant Disclosure Statement, reach out to our experienced property legal team today.  We’re here to guide you through the changes with confidence.

Purchasing & Buying Your Next Private Rooms

Purchasing & Buying Your Next Private Rooms

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Purchasing & Buying Your Next Private Rooms

Author: Vicki Yeung

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1 min read

18 Jun 2024

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Part 1: Retail Shop Leases in Queensland – what are the differences between a retail shop lease and a commercial lease?

Part 1: Retail Shop Leases in Queensland – what are the differences between a retail shop lease and a commercial lease?

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Part 1: Retail Shop Leases in Queensland – what are the differences between a retail shop lease and a commercial lease?

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5 min read

1 Mar 2023

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    Key Takeaways
  • The Retail Shop Leases Act 1994 (Qld) applies to retail shop leases in Queensland.
  • That Act provides a number of protections for tenants and also requires the parties undertake a disclosure process prior to entering into a retail shop lease.
  • It is important landlords and tenants are aware of the material terms of their commercial or retail lease, as the case may be, and the impact and obligations imposed on each party.

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As a general rule, the parties to a commercial lease are free to agree to whatever terms they choose, and there are no minimum standards or protections for a tenant. Terms are determined by the market and negotiation between the parties. Commercial leases usually heavily favour a landlord more so than a tenant. 

Whilst the parties to a retail shop lease are also generally free to negotiate the terms of the lease, the RSL Act provides a safety net of certain minimum lease standards that apply to retail shop leases and protect tenants.

The following points illustrate some of the key differences between the two forms of each lease (as applies in Queensland) 

  1. Pre-Lease Disclosure 

As premised above, parties to a commercial lease are generally free to agree to whatever terms they choose, and there are no minimum standards or protections for a tenant. Conversely, in a retail lease, the lessor is obligated to disclose certain information to the tenant. Specifically, a draft of the lease and disclosure statement must be provided by the lessor to the tenant at least seven days before entering into a lease.[1] Similarly, a lessee must give the lessor a disclosure statement in this timeframe.[2] However, the tenant can, by written notice to the lessor, waive the lessor’s obligation to provide a disclosure statement in this timeframe, as long as it is provided prior to entering the lease.[3] Obligations on the lessor in relation to disclosure requirements on renewal under an option, and consequences for failure to comply with the disclosure obligation are prescribed in the Act.[4] A tenant must provide a financial advice report and legal advice report to the lessor prior to entering into a lease.[5]

  1. Rent Review

For a commercial lease, rent reviews are generally conducted annually, either as a fixed percentage increase or a CPI review on each anniversary of the commencement date. If there is an option exercised under the lease, then market rent review generally applies at the commencement of any option term. Inclusion of a ratchet clause (which operates to prevent rent decreasing when it is subject to review) is not unusual in a commercial lease.

Conversely, ratchet clauses are void in retail leases under section 36A of the Retail Shop Leases Act 1994 (Qld) (‘the Act’), as are certain rent review provisions listed under section 36 of the Act. The applicable rent may be reviewed using different bases during the term of the lease, but each review must be made using only one basis.[6] For example, by reference to the current market rent of the leased shop[7], an independently published index of prices, costs or wages[8], or a fixed percentage of the base rent[9] (amongst others). If a retail lease provides for an option on the lessee’s part to renew or extend the lease at the current market rent, and current market rent has not been agreed between the parties, the Act allows a tenant to request the current market rent to be determined[10]. The tenant can request this: 

  • If the lease is not more than a year – from the day that is 3 months before the option expiry date under the lease, to the day that is 1 month before the option expiry day; or
  • If the lease is more than a year – from the day which is 6 months before the option expiry day under the lease to the day that is 3 months before the option expiry day. 

If the current market rent cannot be agreed between the lessor and lessee, a specialist retail valuer may be appointed, the cost of which will be shared between the parties.[11] The Act contains provisions[12] around the process of how the current market rent is determined in this manner. 

  1. Outgoings 

In commercial leases, specifically in a net lease (where the tenant pays a base rent together with a contribution to outgoings), most outgoings are recoverable from the tenant. For a retail lease, under the Act, there are certain outgoings which cannot be recovered by the landlord such as land tax and insurance premiums on loss of profits.[13] The retail lease must specify the outgoings payable by the lessee[14], as well as how they are determined and apportioned[15], and how they can be recovered from the tenant.[16] A lessor must give the lessee an annual estimate (in the prescribed form) of the lessor’s apportionable outgoings for which the lessee will be liable.[17] A statement of the lessor’s apportionable outgoings must be given to the tenant in the approved form within 3 months after the end of the period to which the outgoings relate[18], The statement will compare the estimates with the actual amounts spent by the lessor for the outgoings during the relevant period.[19]

We can provide advice on a wide range of property and leasing matters. If you require our assistance, please do not hesitate to contact us via email or call 07 3220 1144.

[1] s 21B(1)

[2] s 22A

[3] s 21B(2).

[4] s 21E, 21F.

[5] s 22D(1).

[6] s 27(4).

[7] s 27(5)(a).

[8] s 27(5)(b).

[9] s 27(5)(c).

[10] s 27A(1).

[11] s 34.

[12] ss 28A-35.

[13] s 7(3).

[14] s 37(1)(a).

[15] s 37(1)(b).

[16] s 37(1)(c).

[17] s 38A(1).

[18] s 38B(2).

[19] s 38B(c).

Regulation of short-term rental accommodation in Queensland: what you need to know

Regulation of short-term rental accommodation in Queensland: what you need to know

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Regulation of short-term rental accommodation in Queensland: what you need to know

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3 min read

30 Jan 2023

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    Key Takeaways
  • In Queensland, short-term letting has a unique regulatory framework and various considerations that distinguish it from traditional residential tenancies.
  • Planning and zoning legislation, industry codes of conduct, by-laws in strata schemes and other contractual agreements such as leasing agreements and mortgages govern how short-term letting is regulated.
  • Owners who lease their properties short-term should be aware of the regulatory framework which applies.

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Short-term letting involves the letting of either the whole or part of a residential property for a shorter period than a traditional residential tenancy. Given the growing popularity of online booking sites, owners should make themselves aware of the rules, and the legislative requirements which apply around short-term letting.

Legislation regulating short-term letting

Generally, short-term rental accommodation is excluded by the residential tenancy legislation enforced in each state or territory. The legislation relating to the letting of short-term accommodation varies according to the location of the property.

In Queensland, local councils can regulate short-term letting accommodation under local planning laws. The relevant town planning scheme will outline what uses are permitted in certain zones. For example, under the Brisbane City Plan the zones are Residential, Centre, Recreation, Environmental, and Industry. Short-term accommodation is primarily supported in centre zones or located near tourist, cultural or shopping and leisure facilities. 

There may also be specific controls within the relevant town planning scheme[1] which have been implemented by local council in relation to short-term letting accommodation. 

Development approval may need to be sought and obtained under Queensland planning legislation[2]. If this is the case, council will assess the development application against the short-term accommodation code (or similar provision) of the town planning scheme. Failure to apply with these approvals will constitute a development offence. 

Strata schemes 

The applicable strata legislation in Queensland is the Body Corporate and Community Management Act 1997 (Qld) (‘BCCMA’) and its associated regulations. Bodies Corporate which fall under this legislation cannot: 

  1. restrict the type of residential use for a lot; or
  2. prevent an owner leasing their lot. 

These points have been considered judicially and the following has been confirmed: 

  1. short-term letting is a type of residential use and cannot be restricted or prohibited[3]; and
  2. there can be no level of restriction on leasing of a lot[4]

Use of by-laws to regulate or restrict the use of lots for short-term letting have been mentioned in judicial commentary. However, they are likely to be difficult to enforce. 

Conversely, body corporates regulated by the Building Units and Group Titles Act 1980 (Qld) can impose by-laws that restrict the use of a lot for short-term letting. This is because, unlike the limitations in section 180(3) of the BCCMA, this legislation does not contain a section limiting by-laws. 

Contractual Agreements 

Key agreements which may be in place over a property intended to be let short-term must be considered before any lease or licence arrangement is entered. These include mortgages, leases and insurance contracts. If any of these documents apply to the property, and the conditions or terms prohibit short-term letting or hosting, any arrangement entered into may place the owner (or the tenant) in breach. 

If you require our assistance, please do not hesitate to contact us via email or call 07 3220 1144.

[1] For example, the Brisbane City Plan or Noosa Shire Council Subordinate Local Law No 1.

[2] Such as the Planning Act 2016 (Qld) and the Planning Regulation 2017 (Qld).

[3] Body Corporate for Hilton Park CTS 27490 v Robertson [2018] QCATA 168.

[4] Re First Avenue Mooloolaba [2011] QBCCMCmr 241.

Residential Tenancy Law Reform in Queensland – what landlords and tenants need to know

Residential Tenancy Law Reform in Queensland – what landlords and tenants need to know

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Residential Tenancy Law Reform in Queensland – what landlords and tenants need to know

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4 min read

9 Nov 2022

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    Key Takeaways
  • On 1 October 2022, numerous changes to Queensland residential tenancy laws commenced under the Housing Legislation Amendment Act 2021.
  • The changes were introduced to better regulate leased properties across the State and increase obligations of landlords in certain respects.
  • If you own a residential investment property that is tenanted, it is important you are aware of these changes and the further changes coming into effect next year.

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On 1 October 2022, numerous changes to Queensland residential tenancy laws commenced under the Housing Legislation Amendment Act 2021 (amending the law under the Residential Tenancies and Rooming Accommodation Act 2008). These changes were introduced to better regulate leased residential properties across the State and increase obligations of landlords in certain respects. They have been described by Minister for Communities and Housing as “the final step that enlivens to the important Stage 1 Rental Law Reforms passed by the Parliament in 2021”.[1] 

For tenants, the changes mean increased protections in ending tenancies, and it is now easier for tenants to keep pets. For landlords, increased repair and maintenance obligations have been introduced which align with the staggered introduction of Minimum Housing Standards from 1 September 2023 discussed further below. 

Minimum Housing Standards 

The Minimum Housing Standards (‘Standards’) will apply to new leases entered into from 1 September 2023 and all tenancies from 1 September 2024. According to Minister Enoch, the Standards will “help to ensure all Queensland rental properties meet basic safety, security, and functionality standards”[2]. The Standards will require tenanted premises to be, amongst other things: 

  • weatherproof and structurally sound; and
  • free from pests, damp and mould. 

Fixtures and fittings of the premises must also be in good repair. 

Under the commenced changes, tenants must return the entry condition report for the premises within 7 days of occupying the premises, and can authorise emergency repairs up to the equivalent of four weeks’ rent. 

If you own a residential investment property that is tenanted, it is important you are aware of these changes and those associated with the upcoming implementation next year. Now is the time to plan ahead for any work that may be needed to comply with the Standards and the legislation by 1 September 2023. 

If you own a property in a community titles scheme, you should aim to clarify your personal obligations as owner with the body corporate prior to the Standards being enforced in September 2023. The new regulations may cultivate disputes in body corporate schemes as to who is responsible for what – the owner or the body corporate, and therefore it is important owners think ahead.

Ending tenancies

From 1 October 2022, landlords are no longer able to end tenancies ‘without grounds’. However, tenants are able to end tenancies in this manner. Tenants can also end tenancies in situations where the property is not in good repair or fails to meet the Standards. 

There will be new grounds for property owners to end tenancies, including ending a fixed term agreement: 

  • for undertaking significant repair or renovation;
  • for change of use; or
  • in preparation for sale of the property. 

However, where there has been a serious breach of a lease by a tenant, landlords will have to seek an order from QCAT to terminate the tenancy. 

Pets 

The changes will make it easier for tenants to keep pets. The tenant can seek the owner’s consent, and owners can only refuse a request to keep a pet on identified reasonable grounds. For example, if keeping the pet would be in breach of the law or applicable by-laws. Consent may be subject to conditions such as only keeping the pet outside. If property owners do not respond to requests within 14 days, consent will be implied. 

If you would like further guidance around the reforms and their effect on your personal circumstances, please contact us by email or phone 07 3220 1144. Likewise, if you require assistance with another property-related matter, we can certainly assist.

[1] https://statements.qld.gov.au/statements/94557.

[2] https://statements.qld.gov.au/statements/94557.