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Depends on the will. If the will is silent there is a presumption which differs in each state. JT is a disaster and generally not recomended. What about death and bankruptcy - easy to lose the whole house instead of just 50%.

Yes it might be better to pre-empt any messy issues by selling beforehand. I have seen contracts signed and then a caveat lodged afterwards causing settlement to not occur. but get advice.

I was assuming it could get nasty - spouse could place a caveat on title to prevent a sale too.

infidelity is irrelevant under Australian laws, Your parents will be in for a bumpy ride. Any transfer now to defeat the entitlemnet of the spouse could lead to issues. But it still maybe worthwhile. Seek legal advice asap.