Changing Tenants in Common portion

Discussion in 'Legal Issues' started by Tony2019, 13th Feb, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Tony2019

    Tony2019 New Member

    Joined:
    13th Feb, 2020
    Posts:
    2
    Location:
    Queensland
    In mid-2016 I purchased an apartment in a Queensland regional town. It was fully paid for by myself only. However at the time of purchase I chose to include my partner at the times name in the deed, i.e. under Joint Tenancy (my bad!).
    Since early 2017 to date only my partner has been living in the apartment. In early 2019 we split-up and on the advice of a solicitor the deed was changed to tenants-in-common, yet when that was finalised the percentage of share was marked as 50/50. I didn't realise an optional portion may have been allowed given it was simply a change from joint tenancy.
    As my now ex-partner never contributed to the purchase of the property can the tenants-in-common share be amended to provide a differing share, e.g. 95% to me, 5% for her? Would a court favour that type of amendment?
    The issue is if the property needs to be sold some time in the future I was hoping to at least recover more than 50% of the sale as I had fully paid for the property in the first place!
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    6,035
    Location:
    Australia
    Boatload of issues. Cgt. Stamp duty. And will your ex partner agree?
     
  3. Tony2019

    Tony2019 New Member

    Joined:
    13th Feb, 2020
    Posts:
    2
    Location:
    Queensland
    I doubt that she would agree to a change as she would be getting something like $160 to $170K for nothing if the property was sold. But also she wants to live there too, so may not want it sold, yet I may need to sell it and I understand she doesn't have funds to buy it either.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

    Joined:
    9th Jun, 2006
    Posts:
    30,862
    Location:
    Australia wide
    Yes many issues
    stamp duty
    CGT
    and agreement.

    You could seek legal advice about a resulting trust - but if spouses could be difficult.