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A issue when Joint Tenancy beats TIC

Discussion in 'Legal Issues' started by Paul@PFI, 8th Jul, 2016.

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  1. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Care should be taken by non-citizens buying property (home or investment !!) together with a Australian citizen. The Foreign Investment Review Board manage the restriction on non-Australians buying Australian property.

    This doesn't mean just investment properties but that is frequently the topic on concern in the media. It also extends to a home. When the property is existing real estate rather than newly constructed there is a provision that covers the citizen non-resident. However it can be overlooked misunderstood or even just ignored.

    A non-resident non- citizen may have a restriction. So one half of the couple may be unable to acquire an interest. It may be possible to circumvent this issue by buying the property (investment or home!!!) as joint tenants. TIC is NOT permitted !!

    TIP : Whenever a non-citizen proposes buying AND Australian land seek legal advice.

    Read here about exemptions
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Another reason to do JT rather than TIC is if the will is likely to be challenged. This can help protect the 'inheritance' of the survivor.

    e.g. Dad has married a much younger woman, and now has terminal cancer. Their house is owned TIC. The daughter of dad has indicated her displeasure with Dad's set up and has indicated she will challenge the will.

    Dad quickly changes the ownership structure from TIC to JT so that when he dies his new (and hot) wife will be the sole owner and the property will not pass via the will.

    note that in NSW JT could still be challenged, but this will make it much more difficult.