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.

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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.

UPDATED – Changes To Land Tax Assessment

UPDATED – Changes To Land Tax Assessment

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UPDATED – Changes To Land Tax Assessment

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3 min read

6 Oct 2022

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    Key Takeaways
  • From the 1st of July 2023, the method of calculating land tax in Queensland will change.
  • State-based land tax is currently assessed on Queensland-owned freehold land, excluding the family home, in excess of $600,000 for individuals and $350,000 for companies and trusts.
  • The new legislation, as outlined on the Queensland Government website, states that the ownership of interstate land will affect the calculation of Queensland land tax.

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Since publication of this article, the Queensland Government has announced it is shelving plans to amend the rules around land tax liability. The effect of the proposed changes involved calculating the value of an owner’s interstate property portfolio to determine what rates they should pay for any land they owned in Queensland.

Following announcement of the reforms, public statements were made by the Tasmanian, New South Wales and Northern Territory premiers confirming they would not provide landholding records to confirm interstate holdings of investors. In light of the pushback, the Queensland Government has determined it would have great difficulty enforcing the changes.

The shelving of the reforms is good news for landowners and occupants of investment properties in that it provides greater certainty around future estimates of land tax liability for proprietors, and amounts payable by tenants presuming they would bear the cost of the increased liability by way of higher rent or collection of outgoings.

While the reforms have been shelved, it should be noted there is a possibility they could be reinstated in the future (although this is unlikely). 

The way land tax is being calculated in Queensland is changing. Land tax is a state-based tax and is assessed on freehold land beyond a certain value currently owned in excess of a value of around $600,000 for individuals and $350,000 for companies and trusts. 

It is a value tax and the taxable rate is between 1% – 2.25% for individuals and 1.5% – 2.75% for companies and trusts.

The family home is usually exempt. 

Until recently the land assessed to calculate the tax was only on land owned in Queensland. No other land outside that state was taken into consideration when calculating that state’s land tax. [1] 

As of 1 July 2023, all relevant land owned in Australia will be used to ascertain:

  • whether the Queensland land tax-free threshold has been exceeded; and
  • the rate of Queensland land tax that will be applied to the Queensland proportion of the value of your landholdings.

So the interstate land is not technically taxed but ownership of interstate land will affect how much Queensland land tax you will pay. The rate of land tax effectively goes up in those circumstances. 

The example on the Queensland government website shows that a Queensland taxpayer that owns Queensland taxable land valued at $745,000 and Victorian land valued at $1,565,000 would have to pay an extra $6,472.37 every year in land tax. [2] A NSW landowner states that his Queensland land tax liability will increase by about $27,000 a year. [3]

There will also be increased reporting obligations. 

The Queensland government is defending the new law as a way to prevent interstate land investors from taking advantage of multiple tax-free and progressive rate thresholds. [4]  

Commentators are questioning the constitutionality and efficacy of the new law. [5]  It is reported that the NSW government is even seeking advice as to the constitutionality of the Queensland law. [6] 

The REIQ is critical of the proposed law and feels that the proposed increase in land tax will “hurt Queensland landholders, renters, companies, and small businesses in one fell swoop”[7]. Indeed the REIQ is calling for this land tax regime to be repealed. [8]

If you require any assistance regarding your land tax liability or you wish to discuss the issue further. Please do not hesitate to send us an email or call 07 3220 1144. We are here to help.

[1] https://www.reiq.com/articles/reiq-calls-for-repeal-of-illogical-land-tax-regime/ 

[2] https://www.qld.gov.au/environment/land/tax/interstate 

[3] https://www.afr.com/property/residential/new-queensland-land-tax-will-drive-away-investors-20220905-p5bfgi

[4] https://documents.parliament.qld.gov.au/tp/2022/5722T897-861E.pdf 

[5] https://www.afr.com/property/residential/new-queensland-land-tax-will-drive-away-investors-20220905-p5bfgi 

[6] https://au.sports.yahoo.com/qld-property-sector-seeks-land-021603456.html 

[7] https://www.reiq.com/articles/reiq-calls-for-repeal-of-illogical-land-tax-regime/ 

[8] https://www.youtube.com/watch?v=ZovtWKS4LvE