People can own a home either individually or with other people as either Joint Tenants or as Tenants in Common.

• JOINT TENANTS – This means that if one owner dies then the other co-owner automatically receives their share.
• TENANTS IN COMMON – this means each person owns a percentage share of the property. If the percentage is not registered (registration usually is noted on the transfer of title document when purchasing the property), then it is deemed to be in equal shares, e.g. 50/50. When a co-owner dies they can give their share of the property by a will to whomever they please.

How a property is owned is always shown on the Title Certificate. The Certificate will also show any mortgages or other interests held over the property. A record of the title is kept at the Department of Natural Resources and Water. For a small fee you can undertake a “title search” to see who owns a property and how it is owned.

If you are a co-owner and you leave your home for whatever reason and your name remains on the title;

• you continue to be the owner/co-owner,
• the home cannot be placed on the market and sold without your consent,
• If the house is sold, you must agree on how any proceeds from the sale are to be distributed,
• you may make arrangements to  re-enter the home ( in the absence of a Court order to the contrary).

Mortgages

• When you sell a home encumbered by a mortgage, the mortgagee must always be paid first. This is usually arranged to be paid out of the buyer’s purchase monies at the time of settlement.
• You cannot remove your name from a mortgage, re-finance a loan or end a mortgage without the financial institution’s (e.g. a bank) agreement or a Court order.
• It is not advisable to sign mortgage documents without first having them explained by a solicitor.
• Always seek legal and/or financial advice if you are in default of your mortgage payment.
• Mortgages are covered by the Consumer Credit Code. The Code states the steps a bank or financial institution MUST take before re-possessing a person’s home.

Under the Code, if you are experiencing financial difficulty with your loan repayments due to illness, unemployment or another reasonable cause you can approach your financial institution with a hardship application.  This doesn’t absolve you from paying their debt, but does provide more people with the opportunity to apply for a court order to stop lenders taking action such as selling up the home to recover unpaid debts.

For more information contact:

Lifeline Financial Counselling                   3209 3622

Banking Ombudsman                               1800 780 808