Understanding Joint Tenancy and Tenancy-in-Common
In my previous article, I shared the strategy of using 99-to-1 Tenancy-in-Common to avoid paying hefty Additional Buyer Stamp Duty (ABSD) for investors looking at buying second property. Some followers were skeptical while there are those who may not seem to grasp the concept. As such, this follow-up article will explain in more details on how the strategy works.
Before I proceed, readers must understand that 99-to-1 Tenancy-in-Common only works for Executive Condominiums (EC) and private properties. This is important to note because in April 2016, HDB has banned the transfer of HDB flat ownership among married couples. So now married couples cannot decouple their HDB flat. However, this new HDB rule is not applicable to private properties.
When you buy your first property with your spouse/family, it is important to understand the implication of “Manner of Holding”, specifically the significance of Joint Tenancy and Tenancy-in-Common. This is because this relatively unknown term could have major impact on your future property investments and could even result in bitter court cases in the event of divorce cases or death.
No, I am not exaggerating. In my blog, several readers have written in to share their sad stories. This is real and I want you to fully comprehend this article before making judgement. You certainly would want to avoid such pitfalls.
Most people mistakenly thought that the term Joint Tenancy meant that 2 joint owners would each have 50% share of the property. [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
Read my other articles on property-related investments:
- 99-to-1 Tenancy-in-Common
- Frightening HDB rules
- Managing your CPF proceeds from the sale of your HDB to build wealth
- HDB: The thin fine line between Joint Tenancy and Tenancy-in-Common
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