Tenants in Common ??
- Thread starter Rixter
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Reply: 1
From: GoAnna !
I am aware of two types of shared ownership. "Tenants in Common" and "Joint Proprietorship".
"Tenants in Common" is a legal description of joint ownership of property and it allows you to specify the % owned by each purchaser as well as the ability to will your portion of the property to a third party. This would I think be most suited to anyone not in a lifetime intimate committed relationship. Brother and sister, friends, a couple in an earlier part of their relationship etc.
"Joint Proprietor" is more grey in terms of who owns what and from my understanding just means that you own the property in conjunction with whoever else is names on the title. It does not specify the percentage owned by each party. This would be the usual setup for a married couple.
These forms of ownership are specified on the title along with any percentage division.
Please check all of the above with a qualified solicitor.
GoAnna !
(aka Anna before she got real)
From: GoAnna !
I am aware of two types of shared ownership. "Tenants in Common" and "Joint Proprietorship".
"Tenants in Common" is a legal description of joint ownership of property and it allows you to specify the % owned by each purchaser as well as the ability to will your portion of the property to a third party. This would I think be most suited to anyone not in a lifetime intimate committed relationship. Brother and sister, friends, a couple in an earlier part of their relationship etc.
"Joint Proprietor" is more grey in terms of who owns what and from my understanding just means that you own the property in conjunction with whoever else is names on the title. It does not specify the percentage owned by each party. This would be the usual setup for a married couple.
These forms of ownership are specified on the title along with any percentage division.
Please check all of the above with a qualified solicitor.
GoAnna !
(aka Anna before she got real)
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Reply: 2
From: Toyo Spares
I was just reading about this in "The Taxpayers Guide" last night (yes, I know I have no life
).
My understanding is that in Victoria there are three ways to own a property - individual, joint tenant or tenants in common.
In simple terms the differences are as follows.
If owned by an individual, the financial liability, tax deductions and CGT implications rest with the individual and when deceased, revert to the deceased estate. e.g. the one person (whose name is on title) is responsible for repaying loan, paying costs etc.. That same person can claim 100% of the allowable tax deductions and is also liable for 100% of the CGT payable.
Joint tenants - the financial liability and CGT implications rest with and equal split according to the number of tenants (i.e. 50% each if there are two names on the title, 33% if there are three names etc.). When deceased the share of the deceased automatically reverts to the remaining tenants and NOT the deceased's estate. e.g. if there are two joint tenants (two names on title) they are both responsible for repaying loan, paying costs etc. at a 50/50 split. Those same persons can claim 50% of the allowable tax deductions and are also liable for 50% of the CGT payable.
Tenants In Common - the financial liability and CGT implications rest with the respective tenants according to %'s specified in the nomination clause added to the contract. i.e. could be 99% one tenant and 1% other tenant or 80%, 20% etc.. When deceased the interest in the property reverts to the deceased estate and NOT to the other tenants as occurs in joint tenants.
According to "The Taxpayer's Guide", "Tenants in common effectively own a separate (though undivided) interest in the asset, and may dispose of the interest without affecting other tenants in common (e.g. partners can each hold separate and unequal interests in assets of the partnership)."
This however contradicts another statement I have heard that says - "If married, purchase properties as "Tenants In Common". 99% in man's name and 1% in woman's name. Doing so means that the property cannot be sold or borrowed against etc. without both parties knowing (i.e. during divorce etc.). i.e. add a nomination clause to the contract that says - "Eddy and Sue Smith and Nominee" and specify the %'s."
Anyone care to clarify that last point ? i.e. one says that interests may be disposed of without affecting other tenants but the other says that all tenants must be aware of any dealings on the asset.
Toyo
From: Toyo Spares
I was just reading about this in "The Taxpayers Guide" last night (yes, I know I have no life
).My understanding is that in Victoria there are three ways to own a property - individual, joint tenant or tenants in common.
In simple terms the differences are as follows.
If owned by an individual, the financial liability, tax deductions and CGT implications rest with the individual and when deceased, revert to the deceased estate. e.g. the one person (whose name is on title) is responsible for repaying loan, paying costs etc.. That same person can claim 100% of the allowable tax deductions and is also liable for 100% of the CGT payable.
Joint tenants - the financial liability and CGT implications rest with and equal split according to the number of tenants (i.e. 50% each if there are two names on the title, 33% if there are three names etc.). When deceased the share of the deceased automatically reverts to the remaining tenants and NOT the deceased's estate. e.g. if there are two joint tenants (two names on title) they are both responsible for repaying loan, paying costs etc. at a 50/50 split. Those same persons can claim 50% of the allowable tax deductions and are also liable for 50% of the CGT payable.
Tenants In Common - the financial liability and CGT implications rest with the respective tenants according to %'s specified in the nomination clause added to the contract. i.e. could be 99% one tenant and 1% other tenant or 80%, 20% etc.. When deceased the interest in the property reverts to the deceased estate and NOT to the other tenants as occurs in joint tenants.
According to "The Taxpayer's Guide", "Tenants in common effectively own a separate (though undivided) interest in the asset, and may dispose of the interest without affecting other tenants in common (e.g. partners can each hold separate and unequal interests in assets of the partnership)."
This however contradicts another statement I have heard that says - "If married, purchase properties as "Tenants In Common". 99% in man's name and 1% in woman's name. Doing so means that the property cannot be sold or borrowed against etc. without both parties knowing (i.e. during divorce etc.). i.e. add a nomination clause to the contract that says - "Eddy and Sue Smith and Nominee" and specify the %'s."
Anyone care to clarify that last point ? i.e. one says that interests may be disposed of without affecting other tenants but the other says that all tenants must be aware of any dealings on the asset.
Toyo
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From: Toyo Spares
Also I forgot to mention -
See the ATO Rental Properties booklet -
http://www.ato.gov.au/content.asp?doc=/content/Individuals/rental_properties.html
And in particular - TR 93/32 - Taxation Ruling
Income tax: rental property - division of net income or loss between co-owners
http://law.ato.gov.au/pbrdocs/tr93-32.doc
They have good examples.
Toyo
From: Toyo Spares
Also I forgot to mention -
See the ATO Rental Properties booklet -
http://www.ato.gov.au/content.asp?doc=/content/Individuals/rental_properties.html
And in particular - TR 93/32 - Taxation Ruling
Income tax: rental property - division of net income or loss between co-owners
http://law.ato.gov.au/pbrdocs/tr93-32.doc
They have good examples.
Toyo
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Reply: 1.1.1
From: GoAnna !
Rixter,
I think your percentage question has been answered above. Yes? I have never checked it out myself but sounds like 1% 99% is possible.
I also understand that marriage or children would have some bearing on the court's interpretation of ownership.
GoAnna !
(aka Anna before she got real)
From: GoAnna !
Rixter,
I think your percentage question has been answered above. Yes? I have never checked it out myself but sounds like 1% 99% is possible.
I also understand that marriage or children would have some bearing on the court's interpretation of ownership.
GoAnna !
(aka Anna before she got real)
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