Tenancy in common

Rates and thresholds change. The current figures are kept in one place: the Singapore property rules reference.

Under tenancy in common, each co owner holds a specific, defined share of the property, commonly expressed as a percentage such as 50 50, or an unequal split such as 99 to 1, rather than an undivided whole interest shared with the others. That share is treated as the owner's own property. It forms part of their estate and passes according to their will, or under the rules of intestacy if they have no will, rather than automatically going to the other co owners. This is the key structural difference from joint tenancy, and it is why tenancy in common tends to come up in conversations about estate planning, second marriages, unequal financial contributions, and ownership restructuring between family members.

Tenancy in common appears at the same point in a transaction as joint tenancy does, when the manner of holding is decided and lodged with the property's title at the point of purchase or transfer. For HDB flats, tenants in common must generally meet HDB's specific conditions to hold in that manner, since HDB's default position favours joint tenancy for most co owners. For private property, the choice sits with the buyers and their lawyer, and the defined percentage split, however unequal, gets recorded formally. Tenancy in common also becomes relevant later in ownership, since an existing joint tenancy can be converted into a tenancy in common through a formal process, most often as part of restructuring ownership for stamp duty or estate planning purposes.

What commonly goes wrong is usually a mismatch between the ownership structure chosen and what the owners actually want to happen down the line. Owners sometimes default into joint tenancy without realising it forecloses leaving a share to someone outside the co ownership, only to discover this years later when reviewing their estate plan. On the other side, an unequal tenancy in common split, such as one used in a restructuring exercise, needs to be reflected accurately and consistently in both the title deed and any accompanying trust deed or agreement between the parties, since a mismatch between the stated percentage and the parties actual intentions can cause disputes later, particularly if the property is later sold or one owner wants to buy the other out.

What a buyer or family should actually check before finalising the ownership structure is whether tenancy in common, and what specific split, actually reflects each party's financial contribution and their wishes for what happens to their share on death. Anyone using an unequal tenancy in common structure, particularly for stamp duty or restructuring purposes, should also confirm the tax and eligibility implications with their lawyer and, where relevant, a financial adviser, since the percentage chosen can affect stamp duty calculations and loan eligibility for each party. This is general information only, and the right structure depends entirely on individual family and financial circumstances.

Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.