Tenants in Common NZ: How Property Ownership Affects Inheritance

How your property is registered at LINZ — as joint tenants or tenants in common — determines exactly what happens to it when you die. Get this wrong and your will is overridden, your children could be disinherited, or your partner could be forced to sell the family home.

Joint Tenants vs Tenants in Common

Joint tenancy. Both owners hold the entire property together. When one dies, the property automatically transfers to the survivor by "right of survivorship." This bypasses the will entirely — it doesn't matter what the will says about the property. The surviving owner simply files a Transmission by Survivorship with LINZ and the title updates.

Tenancy in common. Each owner holds a defined share (50/50, 60/40, or any split). When one dies, their share does not pass to the co-owner. Instead, it's distributed according to their will, or under intestacy rules if there's no will. This share requires a formal High Court grant to transfer — LINZ needs a court grant before updating the title.

Many couples who buy property together are registered as joint tenants. It's the simpler option and works well for straightforward situations: when one dies, the other gets the property, no High Court grant needed.

When Tenancy in Common Matters

The distinction becomes critical in three situations:

Blended families. A couple with children from previous relationships might choose tenancy in common so that each parent's share goes to their biological children after death, rather than automatically to the surviving partner. A will might grant the surviving partner a "life interest" — the right to live in the property for their lifetime — with the share passing to the children after that.

Unequal contributions. If one partner contributed significantly more to the purchase price, tenancy in common lets them register an unequal split (e.g., 70/30) that reflects actual contributions.

Asset protection. Some couples convert from joint tenancy to tenancy in common as part of estate or relationship property planning, particularly when one partner has business debts or creditor exposure.

The Hidden Trap

The most dangerous scenario is a mismatch between property registration and will provisions:

• If a couple registers as joint tenants but the will tries to leave a property share to someone else → the survivorship rule overrides the will. The children named in the will get nothing from the property.
• If a couple registers as tenants in common but assumes the property will pass to the survivor → the deceased's share goes to whoever the will names (or under intestacy rules), potentially forcing the surviving partner to buy out the other beneficiaries or sell.

Both mistakes happen regularly. Couples register as joint tenants when they buy the house, years before they have stepchildren to consider. Or they convert to tenancy in common on an accountant's advice without updating their wills to match.

How Property Transfers Work at LINZ

Joint tenancy (Transmission by Survivorship). The surviving owner's solicitor files electronically through Landonline. No High Court grant needed, no court grant required. This is the fastest path — the title can be updated within days.

Tenancy in common (Transmission to Executor). The executor must first obtain a High Court grant from the Wellington High Court ($275 filing fee, typically 1 to 8 weeks). Once the grant is issued, the executor's solicitor files a Transmission to Executor through Landonline, then a transfer to the beneficiary.

Both processes require a conveyancing solicitor or legal executive — LINZ doesn't accept public filings through Landonline.

Checking Your Title

You can check how your property is registered by searching the LINZ title register. The title will state whether the owners hold as "joint tenants" or "tenants in common in equal shares" (or whatever the specified shares are).

If you're unsure and you co-own property, check this before you finalise your will. Your will can only control your tenancy-in-common share — it has no effect on joint tenancy property.

Our New Zealand End-of-Life Planning Guide includes a property title audit worksheet and walks through how to match your title registration to your will provisions — so the property goes where you intend, not where the default rule sends it.

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