Co-ownership: ‘Joint Tenants’ vs ‘Tenants in Common’ – What’s the difference???

When two or more people buy a property (real property, i.e. land, with or without a built structure) you will be asked by your lawyer how you wish to hold that property.  You will choose either ‘Joint Tenants’ or ‘Tenants in Common’. 

So, what’s the difference?  The key difference is what happens upon the death of one of the co-owners as set out below:

Joint Tenants:  If you hold as ‘Joint Tenants’, each co-owner has a right to the whole of the property, shared equally with the other co-owners.  When one joint tenant dies, the other surviving joint tenant becomes the sole owner (or if there are two or more survivors they continue to hold as ‘Joint Tenants’ between themselves).  This happens automatically!  Regardless of what it says in your Will, the property will pass to the surviving joint tenant (or joint tenants).  Under the current law in Queensland, not even a person who contests a Will by a family provision application can interfere with this!  Most married couples hold as ‘Joint Tenants’.

Tenants in Common: This option allows co-owners to nominate their respective share in the property.  The shares do not need to be equal.  For example, 15%/35%/50%, is an acceptable way for ‘Tenants in Common’ to hold a property (but this is not possible as ‘Joint Tenants’).  Further, on death, a co-owner’s distinct share forms part of their estate and can be left via his or her Will.  Most business partners or investors hold as ‘Tenants in Common’.

Can the type of tenancy be changed?  Usually, yes, but it is easier and more cost-effective to get it right from the start.  A change from ‘Joint Tenants’ to ‘Tenants in Common’ is quite common (and is often done after a couple separates or divorces).  This can be done by agreement between all co-owners or by one co-owner even if the other (or others) don’t agree.  ‘Tenants in Common’ can also be changed to ‘Joint Tenants’, but only if all co-owners agree to do so.

So, when buying real property with another person (or persons), be sure you make a conscious decision as to how you wish to hold the property.  Happy property investing to you all! Till next time… Foxlaw out :)

Landlords and Tenants - Is your lease a 'RETAIL SHOP LEASE'?

When talking about a lease of an area to operate your business from, these leases may be broken into 2 types: 

•          ‘Retail shop leases’; and

•          ‘Non-retail shop leases’ (often simply called commercial leases). 

In Queensland, retail shop leases are covered by a specific Act, the Retail Shop Leases Act 1994, which provides for special rules for retail shop leases.  The main job of the Act is to provide equity (or fairness) in retail leasing.  This is done, in part, by providing some extra rights/protections that do not exist under the general law.

You should not assume a lease is not a ‘retail shop lease’ just because you feel the business does not sell ‘retail’ goods.  The definition set out in the Act requires careful reading and there are some leases which are ‘retail shop’ even though you may not necessarily think of them in that way.  

Therefore, whether a lease is in the initial negotiation stage, or if an issue or dispute has arisen during the life of the lease, it pays to ask the question: Is this lease a ‘retail shop lease’?  The answers to a whole range of other questions can depend on whether the Retail Shop Leases Act applies.  Happy leasing everyone!

P.S. Newsflash: On Tuesday, 10 May 2016, the Retail Shop Leases Amendment Bill 2015 was passed, amending the Retail Shop Leases Act 1994.  These amendments have been in the works for some time.  The changes will only take effect six (6) months after the date of assent.  So… watch this space!  

This is the first blog post of FOXLAW. As such, I think it's appropriate for me to introduce the team! Left to right, we have Jenna O'Donnell (conveyancer), Stacey Kennedy (paralegal) and myself, Josh Fox (solicitor). Based in Rockhampton, we are focused on property and business law and here to assist CQ's property investors and the local business community. We are super friendly too! Plus, we do things a little bit differently to traditional law firms. Going forward, we'll post a variety of articles on property and business law, which we hope our readers will find helpful, interesting and/or entertaining. As always, please seek specific legal advice from your solicitor before taking action in real life... naturally, this blog is no substitute for that! Till next time... Foxlaw out :)